TransDigm Group (NYSE: TDG) lowers term loan spreads and extends to 2030

Rhea-AI Filing Summary

TransDigm Group Incorporated reported that its wholly owned subsidiary TransDigm Inc. amended its senior credit agreement on September 17, 2025. The company repriced the margin on $1,686 million of existing term loans K from Term SOFR plus 2.75% to Term SOFR plus 2.25%. It also amended and extended $1,857 million of existing term loans I, pushing the maturity from August 2028 to March 2030 and reducing the margin on these loans from Term SOFR plus 2.75% to Term SOFR plus 2.25% by converting them into new tranche K term loans. Other terms and conditions of the new tranche K loans remain substantially the same as before the amendment.

Insights

Credit & Capital Structure Analyst

TransDigm refinances large term loans, lowering spreads and extending maturities.

TransDigm Inc. amended its credit agreement on September 17, 2025, affecting two major term loan tranches. The margin on $1,686 million of term loans K was reduced from Term SOFR plus 2.75% to Term SOFR plus 2.25%, directly lowering the interest spread on that debt.

The company also amended and extended $1,857 million of term loans I by converting them into new tranche K term loans. These loans now mature in March 2030 instead of August 2028, with the margin similarly reduced from Term SOFR plus 2.75% to Term SOFR plus 2.25%. Other terms remain substantially unchanged, so the main effects are pricing and tenor.

This type of refinancing typically aims to lock in longer-dated funding while reducing ongoing interest cost per dollar of debt. The actual financial impact will depend on future Term SOFR levels and how long these tranches remain outstanding under the amended terms, as described in the underlying credit agreement.

8-K Event Classification

3 items: 1.01, 2.03, 9.01

3 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

TransDigm Group INC false 0001260221 0001260221 2025-09-17 2025-09-17

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 17, 2025

TransDigm Group Incorporated

(Exact name of registrant as specified in its charter)

Delaware		001-32833		41-2101738
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1350 Euclid Avenue, Suite 1600, Cleveland, Ohio		44115
(Address of principal executive offices)		(Zip Code)

(216) 706-2960

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:		Trading Symbol:		Name of each exchange on which registered:
Common Stock, $0.01 par value		TDG		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01. Entry into a Material Definitive Agreement.

Completed Refinancing Summary

On September 17, 2025, TransDigm Inc. (“TransDigm”), a wholly-owned subsidiary of TransDigm Group Incorporated (“TD Group”), completed an amendment to the Credit Agreement (as defined below), that, among other things, (i) reprices the margin on $1,686 million of existing term loans K from Term SOFR plus 2.75% to Term SOFR plus 2.25% and (ii) amends and extends $1,857 million of existing term loans I from August 2028 to March 2030 and reduces the margin from Term SOFR plus 2.75% to Term SOFR plus 2.25%.

Credit Agreement Amendment

On September 17, 2025, TransDigm, TD Group and certain subsidiaries of TransDigm entered into Amendment No. 19, Loan Modification Agreement and Refinancing Facility Agreement (the “Credit Agreement Amendment”), pursuant to which, among other things, TransDigm repriced all of its existing term loans K maturing March 22, 2030 and amended and extended $1,857 million of its existing term loans I by converting such loans into term loans K (collectively, the “New Tranche K Term Loans”). The applicable margin for the New Tranche K Term Loans bearing interest at Term SOFR is 2.25%. Except as set forth above, the other terms and conditions that apply to the New Tranche K Term Loans are substantially the same as the terms and conditions that applied to the term loans immediately prior to the Credit Agreement Amendment.

The Credit Agreement Amendment amends that certain Second Amended and Restated Credit Agreement, dated June 4, 2014 (as amended, the “Credit Agreement”), with Goldman Sachs Bank USA, as administrative agent and collateral agent, and the other agents and lenders named therein.

The above summary of the Credit Agreement Amendment is qualified in its entirety by reference to the Credit Agreement Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation.

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Description
10.1*		Amendment No. 19, Loan Modification Agreement and Refinancing Facility Agreement, dated as of September 17, 2025, to the Second Amended and Restated Credit Agreement, dated June 4, 2014, among TransDigm Inc., TransDigm Group Incorporated, each subsidiary of TransDigm Inc. party thereto, the lenders party thereto, and Goldman Sachs Bank USA, as administrative agent and collateral agent for the lenders.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

* Certain exhibits have been omitted pursuant to Instruction 4 to Item 1.01 of Form 8-K. TD Group hereby undertakes to furnish on a supplemental basis a copy of any omitted exhibit upon request by the Securities and Exchange Commission.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TRANSDIGM GROUP INCORPORATED
By:		/s/ Sarah Wynne
Name:		Sarah Wynne
Title:		Chief Financial Officer
		(Principal Financial Officer)

Dated: September 18, 2025

FAQ

What did TransDigm Group (TDG) change in its credit agreement on September 17, 2025?

On September 17, 2025, TransDigm Inc., a subsidiary of TransDigm Group, entered into a Credit Agreement Amendment that repriced its existing term loans K and amended and extended a large portion of its term loans I into new tranche K term loans.

How much TransDigm debt was repriced in the new amendment?

The amendment repriced the margin on $1,686 million of existing term loans K, reducing the spread from Term SOFR plus 2.75% to Term SOFR plus 2.25%.

What changes were made to TransDigms term loans I in the 2025 amendment?

TransDigm amended and extended $1,857 million of term loans I by converting them into new tranche K term loans, pushing the maturity from August 2028 to March 2030 and reducing the margin from Term SOFR plus 2.75% to Term SOFR plus 2.25%.

Did the terms of TransDigms new tranche K term loans change besides pricing and maturity?

The company states that, except for the repricing and extension described, other terms and conditions of the new tranche K term loans are substantially the same as those that applied before the amendment.

Who is the administrative agent under TransDigms amended credit agreement?

Goldman Sachs Bank USA serves as administrative agent and collateral agent under the Second Amended and Restated Credit Agreement, as amended by the Amendment No. 19, Loan Modification Agreement and Refinancing Facility Agreement dated September 17, 2025.

Where can investors find the full details of TransDigms 2025 credit amendment?

Full details are contained in Exhibit 10.1, titled Amendment No. 19, Loan Modification Agreement and Refinancing Facility Agreement, which is incorporated by reference in the report.