TransDigm proposes $3 bln secured debt offering; shares down

TransDigm Incorporated

03/09/2024 17:38

** Aircraft components maker TransDigm's shares  TDG.N  fall
3% to $1,332.00
    ** TDG to offer incremental $3 bln of new secured debt,
comprising $1.5 bln of new secured notes and $1.5 bln of new
term loans
    ** Brokerage TD Cowen says offering should enable co's
capacity to fund over $4 bln of M&A
    ** Meanwhile, co says proceeds to fund special cash dividend
to holders of common stock in range of $3.5 bln to $4.5 bln, as
well as for cash dividend equivalent payments on eligible vested
options under its stock option plans
    ** "Investors may view the special dividend as evidence of a
less actionable M&A pipeline" - TD Cowen
    ** Six brokerages rate the stock "strong buy", thirteen
"buy" and seven "hold"; their median PT is $1481.44 - LSEG data
    ** Up to last close, stock had risen ~32% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))