TransDigm Group, a major supplier of aircraft components, announced plans on Monday to raise $2 billion through a mix of notes and loans to finance its latest acquisition spree. The capital injection will support the purchases of Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation Holdings as the company expands its footprint in the aerospace aftermarket.
The proposed debt package is split evenly between $1 billion in senior subordinated notes and $1 billion in new term loans. According to the company, the notes will be guaranteed by TransDigm and its subsidiaries, providing the necessary liquidity to finalize three significant deals.
Financing the Aerospace Expansion
The move follows a period of aggressive consolidation for the manufacturer. By acquiring Stellant Systems and the combined Jet Parts Engineering and Victor Sierra units, TransDigm aims to bolster its proprietary aerospace components portfolio and strengthen its position in the global supply chain.
Financial records indicate that Goldman Sachs is serving as the administrative and collateral agent for the term loan portion of the offering. This financing strategy allows the company to maintain its growth trajectory without diluting existing equity, a common tactic for the highly leveraged aerospace firm.
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