By Paul A. Harris
St. Louis, Oct. 12 - Allison Transmission Inc. returned to the bond markets Friday to price a $550 million tranche of eight-year senior toggle notes (Caa1/B-) at par to yield 11 ¼%, just one day after completing the sale of a $550 million tranche of eight-year senior cash-pay notes. The toggle notes came 25 basis points behind the cash-pay notes.
There was no official price talk. However market sources told Prospect News on Friday that unofficial guidance was 11¼% to 11 3/8%.
Citigroup, Lehman Brothers and Merrill Lynch & Co. were joint bookrunners for the Rule 144A for life notes.
The notes are part of an overall $1.1 billion of bond financing backing the acquisition of the company by The Carlyle Group and Onex Corp. from General Motors Corp.
Allison Transmission is a Speedway, Ind., designer and manufacturer of automatic transmissions.
| Issuer: | Allison Transmission
|
| Amount: | $550 million
|
| Maturity: | Nov. 1, 2015
|
| Security description: | Senior PIK toggle notes
|
| Bookrunners: | Citigroup, Lehman Brothers, Merrill Lynch & Co.
|
| Coupon: | 11¼%
|
| Price: | Par
|
| Yield: | 11¼%
|
| Spread: | 657 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Nov. 1, 2011 then callable at 105.625, 102.813, par on and after Nov. 1, 2013
|
| Equity clawback: | Until Nov. 1, 2010 for 35% at 111.25
|
| Trade date: | Oct. 12
|
| Settlement date: | Oct. 17
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A for life
|
| Price talk: | None, but unofficial guidance was 11 ¼% to 11 3/8%
|
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