By Abigail W. Adams
Portland, Me., Nov. 9 – Allison Transmission Inc. priced $1 billion senior notes due Jan. 30, 2031 (Ba3//BB) at par to yield of 3¾% in a Monday drive-by, according to a market source.
Pricing came at the tight end of talk for a yield of 3¾% to 4%. Initial guidance was in the low 4% area.
The notes are non-callable until Jan. 30, 2026.
Citigroup Global Markets Inc. (lead left), BMO Capital Markets Corp., Fifth Third Securities Inc., MUFG, Barclays, BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are joint bookrunners for the Rule 144A and Regulation S offering.
There is a poison put at 101 and an equity clawback of up to 40% for the first three years.
Proceeds will be used to redeem the company’s 5% senior notes due 2024.
Allison Transmission is an Indianapolis-based transmission and propulsion system manufacturer.
| Issuer: | Allison Transmission Inc.
|
| Amount: | $1 billion
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| Maturity: | Jan. 30, 2031
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| Securities: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc. (lead left), BMO Capital Markets Corp., Fifth Third Securities Inc., MUFG, Barclays, BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 3¾%
|
| Price: | Par
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| Yield: | 3¾%
|
| Spread: | 280 bps
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| Call protection: | First call Jan. 30, 2026 at 101.875
|
| Trade date: | Nov. 9
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| Settlement date: | Nov. 19
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| Ratings: | Moody's: Ba3
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| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Yield of 3¾% to 4%
|
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| Marketing: | Quick to market
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