Transdigm Group Inc. · NYSE:TDG
Transdigm — Debt Investor Presentation (February 2013)
25 slides from Transdigm's debt investor presentation, Feb 8, 2013
Slide 1: Senior Secured Credit Facility Refinancing
Exhibit 99.1 ExhibitSecured Senior $2,510,000,000 Presentation February99.1 8, 2013 to Public First Lien Lenders Credit Facility Refinancing
Slide 2: Forward-Looking Statements
Forward This and materially planes with other reports You 1Looking beliefs, are presentation being factors. spend that cautioned Looking statements, from aTransDigm asgovernment aloft Further well those contains Statements and not aswhether information expressed ato our Group number place supplier;
Slide 3: Special Notice Regarding Pro Forma and Non-GAAP Information
Special certain beginning achieved This EBITDA 2Definition: presentation assumptions Notice in Asofthe Defined: theRegarding future. relevant setsand also forth Excludes sets adjustments period, Non-GAAP forth certain inventory certain inpro the and Information forma case non-GAAP does purchase offi
Slide 4: Transaction Agenda
Transaction Agenda Financial Syndication Public Hayes Nick TransDigm Greg & Credit 3Jeff Chief Cohen, Howley, Rufus, Smith, Suisse Q&A Financial Overview Overview Managing Overview Executive Managing Chairman Officer Director &Vice Director and Timetable President Chief Executive Officer
Slide 5: Transaction Overview
TRANSDIGM GROUP INC. INNOVATIVE AERC
Slide 6: Executive Summary of Transaction
Executive components EBITDA Revolving TransDigm -pro Commitments 5Note: Allow For L Unlimited Revolver +forma 2.75%, the EBITDA for LTM As cash Summary Credit covenant an (NYSE: is Restricted for Defined 0.75% seeking also Accounts and period balance As use Facility seeking Required Defined on LIBOR
Slide 7: Financial Overview
TRANSDIGM GROUP INC. INNOVATIVE AERC
Slide 8: Pro Forma Capitalization
Proin ($ Actual 12/29/2012 Estimated Existing New Senior Total Net 12/29/12 (1) 7(2) Assumes Forma Debt millions) Revolver(1) First senior debt Subordinated Cum. Revolver First LTM toLien Cash $4,319 Capitalization multiple EBITDA secured LIBOR ratings EBITDA Lien EBITDA Term $554 05.2x $0 Term 0.0x
Slide 9: TransDigm Overview
TRANSDIGM GROUP INC. INNOVATIVE AERC
Slide 10: TransDigm Overview
($ inEnterprise Business FY LTM Actual Revenue: EBITDA Margin: Enterprise Highly CHARACTERISTICS DISTINGUISHING Proprietary Significant High “Private Note: (1) presentation 9(2) Revenue 2013 millions) free 12/29/12 EBITDA Point(1) engineered 47.0% equity-like” As Overview $1,778 cash Value(2) afterm
Slide 11: Diverse Products, Platforms and Markets
Diverse Products, Platforms and Markets 10
Slide 12: Consistent Revenue and EBITDA Growth
Consistent ($ Revenue $EBITDA $—$ $435 20%% 19% of 23% 27% $375 49% 48% Note: 11$in$ 2012 1994 Revenue 1996 2011 millions) $EBITDA 2007 50% 1993 $ $As $590 $10 $17 2010 $809 Record $ $10 $593 Defined 1,100 1995 31% As $412 47% 2008 of Defined 1,300 $13 1997 and LTM Growth $714 1,500 Margin $25 12/31
Slide 13: Key Credit Considerations
Key Credit ATTRACTIVE Niche Favorable PROVEN Experienced MULTIPLE Market Consistent 12 market growth long-term OPERATING Cash Considerations GROWTH management positions High MARKET Generation industry margins High PATHS STRATEGY team POSITION and margin Acquisitions dynamics Demonstrated Long-Term a
Slide 14: Strong Focus on High-Margin Aftermarket
Strong Pro Defense 11% Comm EBITDA Aftermarket OEM Approximately (1) 13 Information. Pro Forma Focus Aftmkt OEM Forma Aftmkt OEM asRevenues Defined ~57% 32% on revenue 44% 57% 13% High-Margin OEM of (Excluding for FY2012 ~43% the fiscal Aftermarket pro Ground forma year ended Transportation)(1) reve
Slide 15: Significant Proprietary and Sole Source Content
Significant Non-Proprietary TransDigm Non-Sole Proprietary Sole Results Note: 14 Source Based in Source strong Proprietary ~90% Proprietary Sole ~75% on management Source ~10% market ~25%and Sales Sales positions Sole estimates Source and aofRevenue stable, pro forma recurring Base TDGrevenue sales
Slide 16: TransDigm Financial Highlights
TransDigm ($ Fiscal 2007 Cost Gross Selling Amortization Refinancing Income Net % Other Capital EBITDA As Balance Total 15 in% Sales sales interest income of millions) 2008 assets debt of financial profit year and expenditures sales statement from before tax 52.1% 39.4% 14.9% sheet sales As $592.8 1
Slide 17: TransDigm Profile and Deleveraging History
TransDigm 6.5x Pincus Warburg Special Recap FY00 Note: million 16 6.0x Based FY01 &McKechnie Senior Dividend AmSafe 5.5x Deleveraging FY02 onSubordinated 5.0x management IPO Dividend 07/03 Recap 4.5x 4.0x FY03 Profile Acquisition Acquisition Notes estimates 3.5x FY04 (Total 3.0x andFY05 of $150 2.5x
Slide 18: Syndication Overview & Timetable
Syndication Overview & Timetable
Slide 19: Preliminary Transaction Timeline
Preliminary 31Su 10 17 24 Holiday Date AM 12 February 1842PM 11 18 25 Mo 5EST) Event 612 19 26 Tu EST) 7Key 13 819 20 27 82013 13 We 9Senior Transaction 14 21 28 Commitments Close date Th 15 22Fr 16 Secured 23 and Sa fund Timeline Term / Required Loan Lender Facilityconsents Lender Call (due(10 by
Slide 20: Summary of Credit Facility Terms
Summary Borrower: Credit “Joint Tenor: Interest Call Guarantors: Security: each Negative Financial 19 protection: ofLead Suisse Revolver: its rate: covenants: Same covenants: Terms TransDigm, subsidiaries Arranger”) Same LIBOR (“CS”, as Reset 5existing asyears Substantially Revolver: a+ existing 101
Slide 21: Credit Agreement Modifications in Conjunction with Re-pricing
Credit -In Revolving 20 Allowance Allow Set Unlimited conjunction the Agreement required the for Revolving Credit the Company RP forwith ability basket an lenders Facility Modifications Accounts Credit theto subject re-pricing, designate enter the repurchase and Facility ability Receivable into Firs
Slide 22: Public Q&A
TRANSDIGM GROUP INC. INNOVATIVE AERC
Slide 23: Appendix
TRANSDIGM GROUP INC. INNOVATIVE AERC
Slide 24: EBITDA As Defined Reconciliation
($ inIncome Fiscal 1994 Net Less: Depreciation Interest Income Warrant Extraordinary Merger Refinancing Acquisition-related Non-cash deferred One-time Public EBITDA 23 millions) 1995 income year offering expense expense, tax put compensation As $6 special compensation 1996 ended provision ($5) value
Slide 25: Contacts
Contacts -For 24 Robert Kevin Brendan business legal Buddhdew: Hetu: questions Mahan: questions robert.hetu@credit-suisse.com BMahan@cravath.com please kevin.buddhdew@credit-suisse.com please contact: contact: (212) (212) 474—1808 325 –(212) 4542538 – 4294
TransDigm Group — Debt Investor Presentation (February 2013) on 6ix