TDG · 10-K · 2026A · Full report

Interest Rate and Refinancing Exposure

TransDigm Group INC · 2026-11-10 · Importance 13 · Surprise 6

TransDigm’s objective is to maintain at least 75% fixed-rate debt and no more than 25% variable-rate debt to limit exposure to near-term interest-rate changes; approximately 75% of gross debt was fixed rate at September 30, 2026. The Company uses interest-rate swaps and collars to hedge or offset variable rates on term loans. Its contractual interest-payment estimates assume variable term-loan rates of approximately 6.29% to 7.38%, while the filing cautions that movements in Term SOFR and ongoing rate volatility make those estimates highly uncertain.

Key facts

• The securitization facility's applicable interest rate was 5.09% at September 30, 2026, compared with 5.67% at September 30, 2025. source
• TransDigm's objective was to maintain at least 75% fixed-rate debt and no more than 25% variable-rate debt to limit exposure to near-term interest-rate changes. source
• TransDigm expected variable interest rates on existing term loans to range from approximately 6.29% to 7.38% for contractual-obligation estimates, based on anticipated Term SOFR movements; the filing described those movements as highly uncertain. source
• The weighted-average interest rate for cash interest payments on total borrowings was 6.2% in fiscal 2026 and 6.3% in fiscal 2025. source
• As of September 30, 2026, approximately 75% of TransDigm's gross debt was fixed rate. source