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Allison Transmission buys back 89.31% of 7 1/8% notes, calls remainder
By Angela McDaniels
Tacoma, Wash., April 15 – Allison Transmission Holdings, Inc. subsidiary Allison Transmission, Inc. received tenders for $420,889,000 principal amount, or 89.31%, of its $471,263,000 of 7 1/8% senior notes due 2019, according to a company news release.
A tender offer for the notes ended at 11:59 p.m. ET on April 14.
The company also solicited consents to amend the indenture governing the notes to eliminate substantially all of the restrictive covenants, some events of default and related provisions.
All of the tenders were received by 5 p.m. ET on March 31, the consent time, and were accepted for purchase and settled on April 7. No additional notes were tendered after the consent time.
Currently, $50,374,000 principal amount of the notes remains outstanding. All of these notes will be redeemed at 103.563 plus accrued interest on May 15.
In the tender offer, holders received $1,042.00 per $1,000 principal amount of notes, which includes a $30.00 consent payment. The company also paid accrued interest up to but excluding the settlement date.
Holders could not tender their notes without delivering consents or deliver consents without tendering their notes.
As previously reported, the consents received by the consent time were enough to approve the amendments.
The tender offer was funded with the proceeds of a $470 million first-lien senior secured term loan B-3.
The tender offer was conditioned on, among other things, the completion of the bank financing but not on the tender of a minimum principal amount of notes.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) was the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) was the depositary and information agent.
Indianapolis-based Allison Transmission manufactures fully automatic transmissions for medium- and heavy-duty commercial vehicles as well as hybrid-propulsion systems for city buses.
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