Fitch rates TransDigm notes B-

Fitch Ratings said it assigned a B- with recovery rating of RR5 to TransDigm Inc.'s issuance of $950 million of senior subordinated notes.

The ratings consider future issuance of up to $950 million in term loans, which are expected to be incurred sometime later in fiscal-year 2016, Fitch said.

The proceeds will be used to finance the acquisition of Data Device Corp. for about $1 billion and for general corporate purposes, the agency said.

TransDigm is a wholly owned subsidiary of TransDigm Group, Inc., Fitch said.

The outlook is stable.

The company recently announced it entered into a definitive agreement to purchase the stock of ILC Holdings, Inc., Fitch said.

The agency said it believes the acquisition will be a good business fit with its existing businesses.

Fitch said it does not expect the increase in debt to affect TransDigm’s ratings.

The ratings are supported by the company's strong free cash flow, good liquidity, strong margins and healthy commercial aerospace markets, the agency said.

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