TransDigm Group Incorporated
) extended the expiration dates for the exchange offer that
allows up to $500 million of new Senior Subordinated Notes
registered under the Securities Act of 1933 to be exchanged with
the unregistered 'old notes,' both due in 2021.
The exchange offer was formerly set to expire on Sep 26, 2013.
The approximate value of the tenders received as of this
date was $499 million, or about 99.8% of the aggregate principal
amount. Following the extension, the exchange offer is now
scheduled to expire on Oct 1, 2013. The other terms of the
exchange offer remained same as those in the initial prospectus
that was dated on Aug 27, 2013.
In Jun 2013,
announced the offering of guaranteed senior notes worth $500
million of principal amount in aggregate due 2021. The notes were
to be sold through private placement among potential buyers.
TransDigm was to use the proceeds from the debt offering to
finance its dividend to common stock holders totaling $1 billion
to $1.8 billion, along with an additional term loan of $700
million and cash on hand. The proceeds were also to be utilized
for all the related transactions costs and general administrative
TransDigm designs, produces and supplies highly engineered
proprietary aerospace components with significant aftermarket
content. It attempts to differentiate itself on the basis of
engineering, service and manufacturing capabilities. With a
strong free cash flow and meticulous capital structure, TransDigm
seems to be utilizing its resources for inorganic growth, which
are helping it to boost its core operations. The company's
financial performance continues to reflect its proven operating
strategy as one that consistently creates real intrinsic value
TransDigm currently carries a Zacks Rank #4 (Sell).
Better-placed stocks in the sector that are worth a look include
Electronics System Technology Inc
). While Electronics System and Alliant carry a Zacks Rank #1
(Strong Buy), Rolls Royce has a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis
ELECTRONIC SYS (ELST): Get Free Report
ROLLS ROYCE PLC (RYCEY): Get Free Report
TRANSDIGM GROUP (TDG): Free Stock Analysis
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