By Paul A. Harris
St. Louis, Oct. 11 - Underwriters priced a $550 million tranche of Allison Transmission Inc. eight-year senior cash-pay notes (Caa1/B-) at par to yield 11% on Thursday, according to an informed source.
There was no official price talk. However market sources told Prospect News on Wednesday that unofficial guidance had the notes pricing at par to yield 11%.
Citigroup, Lehman Brothers and Merrill Lynch & Co. were joint bookrunners for the Rule 144A for life notes.
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.
| Issuer: | Allison Transmission Inc.
|
| Amount: | $550 million
|
| Maturity: | Nov. 1, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | Citigroup, Lehman Brothers, Merrill Lynch & Co.
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 632 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Nov. 1, 2011 at 105.50, 102.75, par from Nov. 1, 2013
|
| Equity clawback: | Until Nov. 1, 2010 for 35% at 111.0
|
| Trade date: | Oct. 11
|
| Settlement date: | Oct. 16
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A for life
|
| Price talk: | None
|
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