TDG · 10-Q · 2026Q2 · Full report
Outstanding Indebtedness
TransDigm Group INC · 2026-08-04 · Importance 74 · Surprise 58 · Contradicted
Total debt increased to $33,485 million at June 27, 2026 from $30,015 million at September 30, 2025, while first-nine-month net interest expense increased 27.8% to $1,472 million. TransDigm issued $2,000 million of debt on February 13, 2026 and another $1,500 million on April 17, 2026, with proceeds used primarily for acquisitions, repurchases and general corporate purposes. The company had $12,868 million of fully drawn term loans, $2,000 million of 6.750% 2034 Notes and $1,700 million of 6.125% 2034 Notes outstanding at June 27, 2026. Approximately 75% of gross debt was fixed rate, and no term loan or note maturities occur before August 2028.
Key facts
- On February 13, 2026 the Company completed $2,000 million in new debt issuances: $1,200 million 6.125% notes due 2034 and $800 million Initial Tranche N term loans at Term SOFR plus 2.50%. source
- On April 17, 2026 the Company completed $1,500 million in new debt issuances: $500 million additional 6.125% 2034 Notes (issued at 100.375% ~ $2 million premium) and $1,000 million Additional Tranche N term loans at Term SOFR plus 2.50%. source
- There is no maturity on any tranche of term loans or notes until August 2028 (fiscal 2028). source
- The 6.125% 2034 Notes consist of $1,200 million issued Feb 13, 2026 and $500 million issued Apr 17, 2026 (total $1,700 million aggregate principal amount of 6.125% 2034 Notes outstanding as of June 27, 2026). source
- TransDigm has $12,868 million in fully drawn term loans as of June 27, 2026 and a $910 million revolving credit facility. source
- Senior subordinated and secured notes outstanding include a $2,100 million 2028 Secured Notes at 6.750% maturing August 15, 2028 and $1,200 million 4.625% 2029 Notes maturing January 15, 2029 among others as of June 27, 2026. source
- Current liabilities: $1,419 million as of June 27, 2026 and $1,048 million as of September 30, 2025 source
- Non-current liabilities: $33,515 million as of June 27, 2026 and $30,014 million as of September 30, 2025 source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | positive | realized | +125.1% | Total debt as of June 27, 2026: $33,485 million (includes debt issuance costs, original issue discount and premium). |
| liability | negative | realized | -13.1% | Non-current liabilities: $33,515 million as of June 27, 2026 and $30,014 million as of September 30, 2025 |
| liability | negative | realized | -7.5% | On February 13, 2026 the Company completed $2,000 million in new debt issuances: $1,200 million 6.125% notes due 2034 and $800 million… |
| liability | negative | realized | -5.6% | On April 17, 2026 the Company completed $1,500 million in new debt issuances: $500 million additional 6.125% 2034 Notes (issued at… |
| liability | negative | realized | -1.4% | Current liabilities: $1,419 million as of June 27, 2026 and $1,048 million as of September 30, 2025 |
| cash | negative | committed | -0.4% | The Term Loans Facility requires quarterly aggregate principal payments of $32 million. |
| liability | positive | committed | +0.4% | The Term Loans Facility requires quarterly aggregate principal payments of $32 million. |
| liability | negative | realized | -0.2% | At June 27, 2026 the Company had $46 million in letters of credit outstanding and $864 million in borrowings available under the revolving… |