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.

Fool contributor Eric Volkman has no position in TransDigm Group. The Motley Fool recommends TransDigm Group. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.