TransDigm Group amends credit agreement to reprice and extend term loans

TransDigm Group Incorporated (NYSE:TDG), a $71.9 billion aerospace component manufacturer with impressive gross profit margins of nearly 60%, announced Wednesday that its wholly owned subsidiary, TransDigm Inc., completed an amendment to its existing credit agreement. According to a statement based on a filing with the Securities and Exchange Commission, the amendment includes repricing and extending certain term loans. InvestingPro analysis shows the company maintains strong financial health with liquid assets exceeding short-term obligations.

As of September 17, TransDigm repriced the margin on $1.686 billion of its existing term loans K, reducing the interest margin from Term SOFR plus 2.75% to Term SOFR plus 2.25%. The company also amended and extended $1.857 billion of its existing term loans I, changing the maturity date from August 2028 to March 2030 and lowering the margin from Term SOFR plus 2.75% to Term SOFR plus 2.25%. These amended term loans I were converted into new tranche K term loans, which now bear the revised interest rate.

The amendment was executed under the Second Amended and Restated Credit Agreement, dated June 4, 2014, with Goldman Sachs Bank USA acting as administrative agent and collateral agent, along with other participating lenders. Other terms and conditions of the new tranche K term loans remain substantially the same as those that applied prior to the amendment.

The company’s common stock is listed on the New York Stock Exchange under the symbol TDG.

This information is based on a press release statement and an SEC filing.

In other recent news, TransDigm Group Incorporated reported its third-quarter earnings for fiscal year 2025, which fell short of analysts’ expectations. The company’s earnings per share were $9.60, missing the forecast of $9.86 by 2.64%, while revenue was reported at $2.24 billion, below the expected $2.29 billion, a 2.18% miss. Additionally, TransDigm announced a special cash dividend of $90 per share, with a record date set for September 2, 2025, and payment on September 12, 2025. The company also confirmed the receipt of funding for a $5 billion debt package, which includes senior secured notes, senior subordinated notes, and term loans with varying interest rates and maturities.

On the analyst front, Jefferies lowered its price target for TransDigm to $1,490 from $1,650, citing aftermarket concerns, while maintaining a Buy rating. RBC Capital downgraded the company from Outperform to Sector Perform, reducing its price target to $1,385 from $1,550 due to M&A uncertainty. Meanwhile, UBS raised its price target slightly to $1,839 from $1,815, keeping a Buy rating on the stock. These developments highlight the mixed sentiment among analysts regarding TransDigm’s future performance.

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