TransDigm (NYSE: TDG ) 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.