TransDigm Group Incorporated (TDG)’s Q1 2015 Earnings Conference Call Transcript

Before I hand it over to Liza to kick off the Q&A session, I would like to inform you that we will be filing our Q this upcoming Friday.

Liza Sabol – Manager of Investor Relations

Thank you Greg. Operator, we are now ready to open the line.

Operator

The first question comes from the line of Robert Stallard from the Royal Bank of Canada. Go ahead Robert.

Robert Stallard – Royal Bank of Canada

Thanks very much. Good morning.

Nick Howley – Chairman of the Board, Chief Executive Officer

Hi Rob.

Robert Stallard – Royal Bank of Canada

Nick I was wondering if we could kickoff with your folks on the debt market here whether you are seeing any opportunities to raise debt at more attractive rates than what you have seen in recent history & then also your follow on from that your thoughts on deploying that as a special dividend?

Nick Howley – Chairman of the Board, Chief Executive Officer

Yes, the debt market first. I think you know the recent history the last round of financing we raised what was that 9 months ago or something? Yes. I mean that was pretty [Inaudible] attractive rates. I think those particularly the bonds are selling actually at just a [Inaudible] which would tell me that the rates are very very close to what they are now. That market got a little bumpy but I think it’s reasonably stable now. So I think if we went out today we could raise money today, I don’t know what tomorrow would be but I think if we went out today we could probably raise money at very comparable rates to what we did six or nine months ago. Let me just assume that we had roughly the same leverage levels. As far as capital deployment I think we will address that as the year proceeds, we have a fair amount of acquisition, I would say activity we are working on & we probably will let them play out a little bit before we make a decision on capital allocation.

Robert Stallard – Royal Bank of Canada

Great & then as a follow up you mentioned about some issues in the distribution channel in the aerospace aftermarket, I was wondering if u could elaborate on what you think might be going on there?

Nick Howley – Chairman of the Board, Chief Executive Officer

I think they probably got a little held in terms of the ordering at the end of last year. You know that we ran 15% & 18%. We also moved a few distributors around which might have influenced it a little bit. I don’t take a whole lot from that. I just thought it was worthwhile data point to let people know.