TransDigm Group Declares a Special Cash Dividend of $75.00 Per Share and Announces Successful Completion of Incremental Debt
Rhea-AI Summary
TransDigm Group (NYSE: TDG) has announced a special cash dividend of $75.00 per share and cash dividend equivalent payments on eligible vested options. The record date is set for October 4, 2024, with payment scheduled for October 18, 2024. Additionally, the company's subsidiary, TransDigm Inc., has successfully received funding for a $3 billion incremental debt, comprising:
- $1.5 billion in new term loans maturing in 2032 at TERM SOFR plus 2.5% interest
- $1.5 billion in new Senior Secured Notes maturing in 2033 at 6.0% interest
CEO Kevin Stein stated that this special dividend aligns with their goal of delivering returns comparable to well-performing private equity funds while maintaining public market liquidity. The company expects to maintain significant liquidity and financial flexibility after the dividend payout.
Positive
- Declaration of a substantial $75.00 per share special cash dividend
- Successful completion of $3 billion incremental debt funding
- Maintained significant liquidity and financial flexibility post-dividend
Negative
- Increase in debt burden with $3 billion new secured debt
- Potential impact on cash reserves due to large special dividend payout
News Market Reaction
On the day this news was published, TDG gained 1.31%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
TransDigm Group also announced today that on September 19, 2024, its wholly-owned subsidiary, TransDigm Inc., received the funding of the previously announced incremental
"Our regularly stated goal is to deliver returns to shareholders that are comparable to those of well performing private equity funds, while offering the liquidity of a public market. This special dividend is a key part of our ongoing efforts to actively manage our balance sheet and achieve that objective," stated Kevin Stein, TransDigm Group's President and Chief Executive Officer. "The payout of this
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, and electronic components used in the generation, amplification, transmission and reception of microwave signals.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning may identify forward-looking statements. All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; our reliance on certain customers;
Contact:
Investor Relations
(216) 706-2945
ir@transdigm.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/transdigm-group-declares-a-special-cash-dividend-of-75-00-per-share-and-announces-successful-completion-of-incremental-debt-302254118.html
SOURCE TransDigm Group Inc.
FAQ
What is the amount of TransDigm Group's special cash dividend per share?
When is the record date for TransDigm Group's special dividend?
What is the payment date for TransDigm Group's special dividend?
How much incremental debt did TransDigm Inc. secure in September 2024?
What are the terms of the new debt secured by TransDigm Inc.?
