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): October 6, 2006
TransDigm Group Incorporated
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
333-130483
(Commission File Number)
51-0484716
(I.R.S. Employer Identification No.)
1301 East 9th Street, Suite 3710, Cleveland, Ohio 44114
(216) 706-2939
(Address of principal executive offices and telephone number)
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
As previously disclosed, TransDigm Inc. (TransDigm), a wholly-owned subsidiary of TransDigm Group Incorporated (TD Group), acquired all of the issued and outstanding shares of capital stock of CDA InterCorp., a Florida corporation (CDA). On November 2, 2006, and in accordance with the terms of that certain Indenture, dated as of June 23, 2006, by and among TransDigm, TD Group, The Bank of New York Trust Company, N.A., as trustee (the Trustee), and the other parties named therein (the Indenture), TransDigm, TD Group, CDA, certain other direct and indirect subsidiaries of TransDigm named therein and the Trustee entered into that certain First Supplemental Indenture to the Indenture (the First Supplemental Indenture). In addition, on November 2, 2006, and in accordance with the terms of that certain (i) Credit Agreement, dated as of June 23, 2006, among TransDigm, TD Group and the other parties named therein (the Credit Agreement), and (ii) Guarantee and Collateral Agreement, dated as of June 23, 2006, among TransDigm, TD Group, Credit Suisse, as administrative agent and collateral agent, and the other parties named therein (the Guarantee and Collateral Agreement), CDA and Credit Suisse entered into (x) Supplement No. 1 to the Guarantee and Collateral Agreement (Supplement No. 1) and (y) a Joinder Agreement to the Credit Agreement (the Joinder Agreement).
Pursuant to the terms of the First Supplemental Indenture and Supplement No. 1, CDA agreed to, among other things, guarantee all of the indebtedness of TransDigm outstanding under the Indenture and the Credit Agreement, respectively. In addition, under the terms of Supplement No. 1, CDA pledged substantially all of its assets to secure its guaranteed obligations under the Credit Agreement. Pursuant to the terms of the Joinder Agreement, CDA has agreed that it will deemed to be a Loan Party and a Loan Guarantor for all purposes of the Credit Agreement.
The above summary of the First Supplemental Indenture, Supplement No. 1 and the Joinder Agreement is qualified in its entirety by reference to the First Supplemental Indenture, Supplement No. 1 and the Joinder Agreement, which are attached hereto as Exhibits 10.1, 10.2 and 10.3, respectively, and are incorporated herein by reference.
Item 8.01 Other Events
On October 6, 2006, the Board of Directors of TD Group granted a waiver of its conflict of interest policy to W. Nicholas Howley, TD Groups Chairman and Chief Executive Officer, to permit Mr. Howley to serve on the board of directors of Satair A/S, a Danish company listed on the Copenhagen Stock Exchange. The waiver of the conflict of interest policy was necessary because Satair A/S is a distributor of TD Groups products, purchasing approximately $20 million of its products annually. In connection with the grant of the waiver, the Board of Directors determined that it was worthwhile and in TD Groups best interests for Mr. Howley to serve as a director of Satair. Mr. Howley was elected to the Satair A/S board of directors on October 26, 2006.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are being filed with this Current Report on Form 8-K:
10.1 First Supplemental Indenture, dated as of November 2, 2006, among TransDigm Inc., TransDigm Group Incorporated, CDA InterCorp., the other subsidiaries of TransDigm Inc. named therein and The Bank of New York Trust Company, N.A., as trustee.
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10.2 Supplement No. 1, dated as of November 2, 2006, between CDA InterCorp. and Credit Suisse, as collateral agent and administrative agent, to the Guarantee and Collateral Agreement, dated as of June 23, 2006, among TransDigm Inc., TransDigm Group Incorporated, the subsidiaries of TransDigm named therein and Credit Suisse, as administrative agent and collateral agent.
10.3 Joinder Agreement, dated as of November 2, 2006, between CDA InterCorp. and Credit Suisse, as agent.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: November 6, 2006 |
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TRANSDIGM GROUP INCORPORATED |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Executive Vice President and Chief |
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Financial Officer |
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EXHIBIT INDEX
Exhibit Number |
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Description |
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10.1 |
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First Supplemental Indenture, dated as of November 2, 2006, among TransDigm Inc., TransDigm Group Incorporated, CDA InterCorp., the other subsidiaries of TransDigm Inc. named therein and The Bank of New York Trust Company, N.A., as trustee. |
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10.2 |
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Supplement No. 1, dated as of November 2, 2006, among CDA InterCorp. and Credit Suisse, as collateral agent and administrative agent, to the Guarantee and Collateral Agreement, dated as of June 23, 2006, among TransDigm Inc., TransDigm Group Incorporated, the subsidiaries of TransDigm named therein and Credit Suisse, as administrative agent and collateral agent. |
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10.3 |
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Joinder Agreement, dated as of November 2, 2006, between CDA InterCorp. and Credit Suisse, as agent. |
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Exhibit 10.1
EXECUTION COPY
TRANSDIGM INC.,
TRANSDIGM GROUP INCORPORATED,
THE GUARANTORS named herein
and
THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee
FIRST SUPPLEMENTAL INDENTURE
Dated as of November 2, 2006
To
Indenture Dated as of June 23, 2006
by and among
TRANSDIGM INC.,
TRANSDIGM GROUP INCORPORATED,
the GUARANTORS named therein and
THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee
Pursuant to which there were issued $275,000,000 of
7-3/4% Senior Subordinated Notes due 2014
of TransDigm Inc.
FIRST SUPPLEMENTAL INDENTURE
FIRST SUPPLEMENTAL INDENTURE (this SUPPLEMENTAL INDENTURE), dated as of November 2, 2006, among CDA INTERCORP., a Florida corporation (the GUARANTEEING SUBSIDIARY), TransDigm Inc., a Delaware corporation (the COMPANY), TransDigm Group Incorporated, a Delaware corporation (TD GROUP), Adams Rite Aerospace, Inc., a California corporation (ADAMS RITE), ZMP, Inc., a California corporation (ZMP), MarathonNorco Aerospace, Inc., a Delaware corporation (MARATHON), Christie Electric Corp., a California corporation (CHRISTIE), Champion Aerospace Inc., a Delaware corporation (CHAMPION), AVIONIC INSTRUMENTS INC., a Delaware corporation (AVIONIC), DAC Realty Corp., a New Jersey corporation (DAC), Skurka Aerospace Inc., a Delaware corporation (SKURKA), and SWEENEY ENGINEERING CORP., a California corporation (SWEENEY and, together with TD Group, Adams Rite, ZMP, Marathon, Christie, Champion, Avionic, DAC and Skurka, the EXISTING GUARANTORS), and The Bank of New York Trust Company, N.A., as trustee under the indenture referred to below (the TRUSTEE).
W I T N E S S E T H
WHEREAS, the Company and the Existing Guarantors have heretofore executed and delivered to the Trustee an indenture (the INDENTURE), dated as of June 23, 2006, providing for the issuance by the Company of 7-3/4% Senior Subordinated Notes due 2014 (the NOTES) and the guarantees thereof by each of the Existing Guarantors;
WHEREAS, the Indenture provides that under certain circumstances described therein, newly created or acquired Domestic Restricted Subsidiaries shall execute and deliver to the Trustee a supplemental indenture to the Indenture providing for a senior subordinated guarantee of payment of the Notes by such Domestic Restricted Subsidiary (the SUBSIDIARY GUARANTEE); and
WHEREAS, pursuant to Section 9.01(g) of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without the consent of the Holders Notes.
NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary covenants and agrees for the equal and ratable benefit of the Holders of the Notes as follows:
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IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the date first above written.
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TRANSDIGM INC. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
VP and Chief Financial Officer |
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TRANSDIGM GROUP INCORPORATED |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
VP and Chief Financial Officer |
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ADAMS RITE AEROSPACE, INC. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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ZMP, INC. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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MARATHONNORCO AEROSPACE, INC. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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CHRISTIE ELECTRIC CORP. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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CHAMPION AEROSPACE, INC. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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AVIONIC INSTRUMENTS, INC. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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DAC REALTY CORP. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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SKURKA AEROSPACE INC. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Asst. Secretary |
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SWEENEY ENGINEERING CORP. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Secretary |
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CDA INTERCORP. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Secretary |
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THE BANK OF NEW YORK TRUST |
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COMPANY, N.A., as Trustee |
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By: |
/s/ Roxane Ellwanger |
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Name: |
Roxane Ellwanger |
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Title: |
Assistant Vice President |
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Exhibit 10.2
EXECUTION COPY
SUPPLEMENT NO. 1 (this Supplement) dated as of November 2, 2006, to the Guarantee and Collateral Agreement dated as of June 23, 2006 (the Guarantee and Collateral Agreement), among TRANSDIGM INC., a Delaware corporation (the Borrower), TRANSDIGM GROUP INCORPORATED, a Delaware corporation (Holdings), each subsidiary of the Borrower listed on Schedule I thereto (each such subsidiary individually a Subsidiary Guarantor and collectively, the SubsidiaryGuarantors; the Subsidiary Guarantors, Holdings and the Borrower are referred to collectively herein as the Grantors) and CREDIT SUISSE, as administrative agent and collateral agent (in such capacity, the Agent) for the Secured Parties (as defined herein).
A. Reference is made to the Credit Agreement dated as of June 23, 2006 (as amended, supplemented or otherwise modified from time to time, the Credit Agreement), among the Borrower, Holdings, each subsidiary of the Borrower from time to time party thereto, the lenders named therein (the Lenders), and Credit Suisse, as administrative agent and collateral agent for the Lenders.
B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement or the Guarantee and Collateral Agreement referred to therein, as applicable.
C. The Grantors have entered into the Guarantee and Collateral Agreement in order to induce the Lenders to make Loans and the Issuing Bank to issue Letters of Credit. Section 7.16 of the Guarantee and Collateral Agreement provides that additional Domestic Subsidiaries of the Loan Parties may become Subsidiary Guarantors and Grantors under the Guarantee and Collateral Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the New Subsidiary) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Subsidiary Guarantor and a Grantor under the Guarantee and Collateral Agreement in order to induce the Lenders to make additional Loans and the Issuing Bank to issue additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued.
Accordingly, the Agent and the New Subsidiary agree as follows:
SECTION 1. In accordance with Section 7.16 of the Guarantee and Collateral Agreement, the New Subsidiary by its signature below becomes a Grantor and Subsidiary Guarantor under the Guarantee and Collateral Agreement with the same force and effect as if originally named therein as a Grantor and Subsidiary Guarantor and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Guarantee and Collateral Agreement applicable to it as a Grantor and Subsidiary Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor and Subsidiary Guarantor thereunder are true and correct in all material respects on and as of the date hereof. In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in full of the Secured Obligations (as defined
in the Guarantee and Collateral Agreement), does hereby create and grant to the Agent, its successors and assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all of the New Subsidiarys right, title and interest in and to the Collateral (as defined in the Guarantee and Collateral Agreement) of the New Subsidiary. Each reference to a Grantor or a Subsidiary Guarantor in the Guarantee and Collateral Agreement shall be deemed to include the New Subsidiary. The Guarantee and Collateral Agreement is hereby incorporated herein by reference.
SECTION 2. The New Subsidiary represents and warrants to the Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.
SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of the New Subsidiary and the Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement.
SECTION 4. The New Subsidiary hereby represents and warrants that (a) set forth on Schedule I attached hereto is a true and correct schedule of the location of any and all Collateral of the New Subsidiary and (b) set forth under its signature hereto, is the true and correct legal name of the New Subsidiary, its jurisdiction of formation and the location of its chief executive office.
SECTION 5. Except as expressly supplemented hereby, the Guarantee and Collateral Agreement shall remain in full force and effect.
SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 7. In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Guarantee and Collateral Agreement shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
SECTION 8. All communications and notices hereunder shall be in writing and given as provided in Section 7.01 of the Guarantee and Collateral Agreement.
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All communications and notices hereunder to the New Subsidiary shall be given to it at the address set forth under its signature below.
SECTION 9. The New Subsidiary agrees to reimburse the Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Agent.
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IN WITNESS WHEREOF, the New Subsidiary and the Agent have duly executed this Supplement to the Guarantee and Collateral Agreement as of the day and year first above written.
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CDA INTERCORP. |
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By: |
/s/ |
Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Secretary |
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Address: |
450 Goolsby Boulevard |
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Deerfield, Florida 33442 |
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Legal Name: CDA InterCorp. |
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Jurisdiction of Formation: Florida |
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Location of Chief Executive Office: |
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450 Goolsby Boulevard |
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Deerfield, Florida 33442 |
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CREDIT SUISSE, as Agent |
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By: |
/s/ Robert Hetu |
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Name: |
Robert Hetu |
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Title: |
Managing Director |
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By: |
/s/ Cassandra Droogan |
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Name: |
Cassandra Droogan |
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Title: |
Vice President |
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LOCATION OF COLLATERAL
Description |
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Location |
All assets pledged pursuant to the terms of hereof |
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450 Goolsby Boulevard Deerfield, Florida 33442 |
Exhibit 10.3
EXECUTION COPY
JOINDER AGREEMENT
THIS JOINDER AGREEMENT (this Agreement), dated as of November 2, 2006, is entered into between CDA INTERCORP., a Florida corporation (the New Subsidiary), and CREDIT SUISSE, as Agent, under that certain Credit Agreement, dated as of June 23, 2006 (as the same may be amended, supplemented or otherwise modified from time to time, the Credit Agreement), among TransDigm Inc., a Delaware corporation (the Borrower), TransDigm Group Incorporated, a Delaware corporation, the Subsidiaries of the Borrower from time to time party thereto, the Lenders from time to time party thereto and the Agent. All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Credit Agreement.
The New Subsidiary and the Agent, for the benefit of the Lenders, hereby agree as follows:
1. The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed to be a Loan Party under the Credit Agreement and a Loan Guarantor for all purposes of the Credit Agreement and shall have all of the obligations of a Loan Party and a Loan Guarantor thereunder as if it had executed the Credit Agreement. The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Credit Agreement, including without limitation (a) all of the representations and warranties of the Loan Parties set forth in Article III of the Credit Agreement (to the extent made or deemed made on or after the effective date hereof), (b) all of the covenants set forth in Articles V and Vl of the Credit Agreement and (c) all of the guaranty obligations set forth in the Guarantee and Collateral Agreement. Without limiting the generality of the foregoing terms of this paragraph 1, the New Subsidiary, subject to the limitations set forth in the Guarantee and Collateral Agreement, hereby absolutely and unconditionally guarantees, jointly and severally with the other Loan Guarantors, to the Agent and the Lenders, the prompt payment of the Secured Obligations in full when due (whether at stated maturity, upon acceleration or otherwise) to the extent of and in accordance with Guarantee and Collateral Agreement.
2. If required, the New Subsidiary is, simultaneously with the execution of this Agreement, executing and delivering such Collateral Documents (and such other documents and instruments) as requested by the Agent in accordance with the Credit Agreement.
3. The New Subsidiary hereby waives acceptance by the Agent and the Lenders of the guaranty by the New Subsidiary upon the execution of this Agreement by the New Subsidiary.
4. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.
5. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the New Subsidiary has caused this Joinder Agreement to be duly executed by its authorized officer, and the Agent, for the benefit of the Lenders, has caused the same to be accepted by its authorized officers, as of the day and year first above written.
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CDA INTERCORP. |
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By: |
/s/ Gregory Rufus |
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Name: |
Gregory Rufus |
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Title: |
Treasurer and Secretary |
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Acknowledged and accepted: |
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CREDIT SUISSE, as Agent |
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By: |
/s/ Robert Hetu |
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Name: |
Robert Hetu |
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Title: |
Managing Director |
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By: |
/s/ Cassandra Droogan |
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Name: |
Cassandra Droogan |
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Title: |
Vice President |
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