TransDigm Group Incorporated (
the world's leading supplier of highly engineered proprietary
aerospace components has decided to reward its shareholders with
a special dividend.
The board of directors approved a special dividend of $22 per
share, which was a robust increase of almost 71.2% than its last
payout of $12.85 - a special dividend paid last November.
However, the company does not usually pay dividends. Instead it
pays out occasional endowments in the form of a special
distribution. The special dividend equates to a 14.3% yield at
current levels of $154.70 and will be paid on Jul 25 to
shareholders of record as of Jul 15.
TransDigm also announced the procurement of a fresh
incremental term loan of $900 million at a rate of 3.8%, which
will be utilized to reward its shareholders. However, this was
further backed by the proceeds from the recent issue of 7.5%
senior notes worth $500 million of the principal amount in
aggregate due 2021.
At the end of the second quarter of 2013, TransDigm had cash
and cash equivalents of $680.02 million with long-term debt of
$4.3 billion. With this current disposition, the company expects
a cash balance of $450 million by the end of fiscal 2013 with an
available revolver of approximately $300 million. Further, this
will help meet the company's operating and acquisition
With its strong free cash flow and meticulous capital
structure, TransDigm seems to be utilizing its resources for
inorganic growth and boosting shareholders' wealth, which will
help it boost its core operations. The company's financial
performance continues to reflect its proven operating strategy as
one that consistently creates real intrinsic value for
Shares of this leading global designer, producer and supplier
of highly engineered aircraft components, hit a new 52-week high
twice in the last four months. Riding on this news, the stock
experienced a 1.34% rise on Jul 3, 2013 compared to its previous
TransDigm currently carries a Zacks Rank #3 (Hold). Some other
stocks in the industry worth mentioning are
Kratos Defense & Security Solutions, Inc
Astronics Corporation (
HEICO Corporation (
, all carrying a Zacks Rank #1(Strong Buy).
ASTRONICS CORP (ATRO): Free Stock Analysis
HEICO CORP (HEI): Free Stock Analysis Report
KRATOS DEFENSE (KTOS): Free Stock Analysis
TRANSDIGM GROUP (TDG): Free Stock Analysis
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