Transdigm Group Inc. · NYSE:TDG
Transdigm — Debt Investor Presentation (February 2013)
25 slides from Transdigm's debt investor presentation, Feb 8, 2013
Slide 1: Presentation to Public Lenders
$2,510,000,000 Senior Secured First Lien Credit Facility Refinancing Presentation to Public Lenders February 8, 2013
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward‐looking statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning futu
Slide 3: Special Notice Regarding Non-GAAP Information
Special Notice Regarding Non-GAAP Information This presentation sets forth certain pro forma financial information. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma information is based on certain assumptions and adjustment
Slide 4: Agenda
Agenda Transaction Overview Credit Suisse Hayes Smith, Managing Director Financial Overview TransDigm Greg Rufus, Executive Vice President & Chief Financial Officer TransDigm Overview TransDigm Nick Howley, Chairman and Chief Executive Officer Greg Rufus, Executive Vice President & Chief Finan
Slide 5: Transaction Overview
INNOVATIVE AEROSPACE SOLUTIONS
Slide 6: Executive Summary
Executive Summary TransDigm (NYSE: TDG) (“TransDigm” or the “Company”) is a leading supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today − For the LTM period ending December 29, 2012, the Company generated LTM 12/29/12 GAAP Reven
Slide 7: Financial Overview
INNOVATIVE AEROSPACE SOLUTIONS
Slide 8: Pro Forma Capitalization Table
Pro Forma Capitalization Table ($ in millions) Actual Cum. EBITDA Pro forma Cum. EBITDA Interest 12/29/2012 multiple 12/29/2012 multiple rate Ratings Maturity Estimated Cash $554 $554 Existing Revolver $0 0.0x $0 0.0x L + 3.75% Ba2 / BB- December 2015 (1) New Revolver 0 0.0x 0 0.0x L + 2.75% Ba2 / B
Slide 9: TransDigm Overview
INNOVATIVE AEROSPACE SOLUTIONS
Slide 10: Business Overview
Business Overview DISTINGUISHING Business CHARACTERISTICS ($ in millions) Highly engineered aerospace components FY 2013 LTM 12/29/12 Guidance Mid- Proprietary and sole source products Actual Point(1) Revenue: $1,778 $1,850 Significant aftermarket content EBITDA As Defined: $836 $888 High fr
Slide 11: Diverse Products, Platforms and Markets
Diverse Products, Platforms and Markets Message statement 10
Slide 12: Consistent Record of Growth and Margin Expansion
Consistent Record of Growth and Margin Expansion Revenue EBITDA As Defined and Margin ($ in millions) $836 $809 $1,778 $1,700 $1,900 $1,700 $590 $1,500 $1,206 $1,300 $412 $375 $1,100 $333 $828 $762 $900 $714 $275 $593 $700 $194 $164 $435 $374 $139 $124 $301 $500 $293 $249 $98 $201 $151 $72 $131 $54
Slide 13: Key Credit Considerations
Key Credit Considerations ATTRACTIVE PROVEN MULTIPLE MARKET POSITION OPERATING STRATEGY GROWTH PATHS Niche market positions Experienced management team Market growth High margin aftermarket Demonstrated value generation High margins Diverse mix Proven acquisition / integration Acqu
Slide 14: Strong Focus on High-Margin Aftermarket
Strong Focus on High-Margin Aftermarket Pro Forma Revenues (Excluding EBITDA as Defined Ground Transportation)(1) Defense Aftmkt 13% OEM Defense OEM 11% Comm Aftmkt 44% Comm OEM Aftermarket ~57% Aftermarket 32% OEM ~43% Approximately 57% of FY2012 pro forma revenues and a much higher percentage of E
Slide 15: Significant Proprietary and Sole Source Revenue Base
Significant Proprietary and Sole Source Revenue Base TransDigm TransDigm Proprietary Sales Sole Source Sales Non-Proprietary ~10% Non-Sole Source ~25% Sole Source ~75% Proprietary ~90% Results in strong market positions and a stable, recurring revenue stream. Note: Based on management estimates of p
Slide 16: TransDigm Financial Highlights
TransDigm Financial Highlights ($ in millions) Fiscal year LTM CAGR 2007 2008 2009 2010 2011 2012 12/29/2012 2007-2012 Income statement information: Net sales $592.8 $713.7 $761.5 $827.7 $1,206.0 $1,700.2 $1,778.1 23.5% Cost of sales 283.8 327.8 332.2 354.6 544.8 754.5 793.5 Gross profit $309.0 $385
Slide 17: TransDigm Deleveraging Profile
TransDigm Deleveraging Profile (Total Debt / EBITDA As Defined) Warburg 6.5x Pincus McKechnie Recap Acquisition 6.0x Special Dividend 5.5x IPO Recap & AmSafe Dividend Acquisition 5.0x 4.5x 4.0x 3.5x 3.0x 2.5x 2.0x FY00 FY01 FY02 07/03 FY03 FY04 FY05 4/06 FY06 FY07 FY08 FY09 10/09 FY10 12/10 FY11 3/1
Slide 18: Syndication Overview & Timetable
Syndication Overview & Timetable
Slide 19: Preliminary Transaction Timeline
Preliminary Transaction Timeline February 2013 Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Holiday Key date Date Event February 8 Senior Secured Term Loan Facility Lender Call (10 AM EST) February 13 Commitments / Required Lender consents (due
Slide 20: Summary Terms
Summary Terms Borrower: TransDigm, Inc (the "Company" or the "Borrower", and together with TransDigm Group Incorporated (“Holdings”) and certain of the Company’s subsidiaries, the "Credit Group") Joint Lead Arrangers & Credit Suisse ("CS", a "Joint Lead Arranger" and the "Administrative Agent"), UBS
Slide 21: Credit Agreement Modifications
Credit Agreement Modifications In conjunction with the re-pricing, the Company will amend its existing credit facility agreement to: − Set the Revolving Credit Facility Net Leverage Ratio covenant to 6.00x with no step-downs or Interest Coverage Ratio covenant − Unlimited RP basket subject to: Net
Slide 22: Public Q&A
INNOVATIVE AEROSPACE SOLUTIONS
Slide 23: Appendix
INNOVATIVE AEROSPACE SOLUTIONS
Slide 24: EBITDA As Defined Reconciliation
EBITDA As Defined Reconciliation ($ in millions) Fiscal year ended September 30, LTM 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12/31/2012 Net Income ($5) – $1 $3 $14 ($17) $11 $14 $31 ($76) $14 $35 $25 $89 $133 $163 $163 $172 $325 $334 Less: incom
Slide 25: Contacts
Contacts For business questions please contact: − Robert Hetu: robert.hetu@credit-suisse.com (212) 325 – 4542 − Kevin Buddhdew: kevin.buddhdew@credit-suisse.com (212) 538 – 4294 For legal questions please contact: − Brendan Mahan: BMahan@cravath.com (212) 474 - 1808 24
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