TransDigm Group Incorporated announced a special cash dividend of $75.00 on each outstanding share of common stock. The record date for this dividend is October 4, 2024, with payment scheduled for October 18, 2024. This move is part of the company's ongoing efforts to actively manage its balance sheet and deliver private equity-like returns to shareholders.
Concurrently, TransDigm Inc., a wholly-owned subsidiary, successfully secured $3 billion in new secured debt on September 19, 2024. This financing consists of $1.5 billion in new term loans maturing in 2032 with an interest rate of TERM SOFR plus 2.5%, and $1.5 billion in new Senior Secured Notes maturing in 2033 with an interest rate of 6.0%. The new debt provides significant liquidity and financial flexibility for future capital requirements and opportunities.
CEO Kevin Stein stated that the special dividend, combined with the new debt, ensures the company maintains substantial financial flexibility. This capital allocation strategy aims to provide strong returns to shareholders while supporting TransDigm's operational and strategic objectives.
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