Allison Transmission to price $550 million eight-year notes Thursday

By Paul A. Harris

St. Louis, Oct. 10 - Allison Transmission Inc. is expected to price $550 million of eight-year cash-pay senior notes (Caa1/B-) on Thursday, according to an informed source.

The source added that there is no official price talk. However market sources told Prospect News on Wednesday that the notes are expected to price at par to yield 11%.

Citigroup, Lehman Brothers and Merrill Lynch & Co. are joint bookrunners for the Rule 144A for life notes, which come with four years of call protection.

The cash-pay notes are part of the overall $1.1 billion of bond financing backing the acquisition of the company by The Carlyle Group and Onex Corp. from General Motors Corp.

The bond financing also includes toggle notes, which are not in the market at the present time.

Allison Transmission is a Speedway, Ind., designer and manufacturer of automatic transmissions.

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