TransDigm has proposed an additional private offering of $400m aggregate principal amount of 6.25% Senior Secured Notes due 2026.
The offering is dependent on market and other conditions and will not be registered under the 1933 Securities Act’s requirements.
Parent company TransDigm Group is planning to leverage earnings from the offering for general corporate purposes and enhance its liquidity.
TransDigm designs, produces and supplies engineered aircraft components for commercial and military aircraft. Some of its products include mechanical/electromechanical actuators and controls, ignition systems and engine technology.
Earlier this month, the group announced certain measures to help manage the business amid the disruption and decrease in demand caused by the coronavirus pandemic.
The company is planning to reduce its staff by 15%.
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By GlobalDataTransDigm previously issued $4,000m aggregate principal amount of 6.25% Senior Secured Notes due 2026.
The new notes will be an additional issuance of TransDigm’s initial notes. They will be issued under the indenture dated 13 February 2019.
TransDigm Group, TransDigm UK Holding and all of TransDigm’s existing and future US subsidiaries are expected to guarantee the new notes on a senior secured basis. However, some exception will still be applicable.
Both the notes will be considered as a single class under the indenture.
Additionally, the new notes will remain in the same class and series as the initial notes.
On 8 April, the company announced the completion of a private offering of $1.1bn aggregate principal amount of 8.00% Senior Secured Notes due 2025.
