TransDigm Group Incorporated (NYSE:TDG) Files An 8-K Regulation FD Disclosure
Item 7.01
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Regulation FD Disclosure
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rate sensitivity analysis below in Table 1. The analysis reflects
TransDigms current debt structure, interest rate swaps and
interest rate caps and assumes that the LIBO rate used to
calculate TransDigms interest expense grows from 1%, the
assumption on which TransDigms FY 2017 guidance was based, to a
hypothetical 6%.
held on November 14, 2016, TransDigm entered into a new $500
million interest rate swap at a fixed rate of 1.9% and a new $450
million interest rate cap at a fixed rate of 2.5%. The interest
rate sensitivity analysis in Table 1 includes these new
derivatives. Including all current interest rate swaps and
interest rate caps, approximately 75% of TransDigms debt is fixed
or capped.
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Table 1:
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The following table summarizes TransDigms interest rate
sensitivity including all current interest rate swaps and interest rate caps: |
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($ in millions)
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LIBO rate
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Total Cash Interest Expense Before Tax
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Wtd. Avg. Interest Rate Before Tax
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Total Cash Interest Expense After Tax (a)
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Wtd. Avg. Interest Rate After Tax (a)
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Current FY 2017 Guidance (a)
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1.0%
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$560
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5.1%
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$385
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3.5%
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Sensitivity Analysis:
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LIBO rate @ 2.0%
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2.0%
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$605
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5.5%
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$420
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3.8%
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LIBO rate @ 4.0%
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4.0%
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$670
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6.1%
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$460
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4.2%
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LIBO rate @ 6.0%
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6.0%
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$725
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6.6%
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$500
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4.6%
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(a) Current FY 2017 Guidance is for the fiscal year
ending September 30, 2017 and was issued on November 14, 2016. After tax calculations assume a 31% effective tax rate, the same rate assumed in the FY 2017 guidance. This document does not update or confirm guidance now. |
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About TransDigm Group Incorporated (NYSE:TDG)
TransDigm Group Incorporated (TransDigm) is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft. The Company operates through three segments: Power & Control, Airframe and Non-aviation. Its Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. Its Airframe segment includes operations that primarily develop, produce and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. Its Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Its product offerings include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, and power conditioning devices. TransDigm Group Incorporated (NYSE:TDG) Recent Trading Information
TransDigm Group Incorporated (NYSE:TDG) closed its last trading session down -0.04 at 252.50 with 697,697 shares trading hands.
