TransDigm Declares Special Dividend

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TransDigm is rewarding its shareholders mightily with an extraordinary payout. The company has declared a special dividend of $22.00 per share, which will be paid on July 25 to shareholders of record as of July 15.

The company is not usually a dividend payer, instead handing out the occasional disbursement in the form of a special distribution. Before this, its last payout was also a special dividend, amounting to $12.85 per share and paid last November.

TransDigm has strengthened its cash position significantly of late. Concurrent with the announcement of the extraordinary payout, the company said it had secured a fresh incremental term loan of $900 million at a rate of 3.8% and completed a $500 million issue of 7.5% senior subordinated notes maturing in 2021.

The new special dividend yields 14.3% at TransDigm's current stock price of $153.70.

The article TransDigm Declares Special Dividend originally appeared on

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