TransDigm guides $1.2B bond offering backing debt refinancing

Price talk is set at 4.625%-4.75% for TransDigm Inc.'s proposed $1.2 billion offering of eight-year (non-call three) senior subordinated notes, sources said. Books for the Goldman Sachs-led deal will close today at 2 p.m. ET.

Additional bookrunners are Morgan Stanley, Citi, J.P. Morgan, Credit Suisse, KKR Capital Markets, RBC Capital Markets, Barclays, Credit Agricole, HSBC and PNC Capital Markets.

Net proceeds of the offering, plus cash on hand, will be used to redeem all of the company’s outstanding $1.2 billion of 6.5% senior subordinated notes due 2024. The proposed notes are structured with a first call at par plus 50% of the coupon. Issuance for the debt will come under Rule 144A with registration rights.

Assigned issue ratings are B-/B3.

The bonds will extend the company's maturity wall beyond its existing 5.5% senior subordinated notes due November 2027. That paper closed yesterday with a 4.43% yield to worst, according to S&P Global Market Intelligence.

TransDigm Inc., a wholly owned subsidiary of TransDigm Group Inc., designs, produces and supplies aircraft components for commercial and military aircraft.

The company completed its most recent market tap in April 2020, placing a $400 million add-on to its 6.25% senior secured bonds due 2026 that took the tranche size to $4.4 billion.