Allison Transmission to sell $300 million 10-year notes on Thursday

By Paul A. Harris

Portland, Ore., Sept. 21 – Allison Transmission, Inc. plans to price a $300 million offering of 10-year senior notes (Ba3//BB) on Thursday, trailing a mid-morning conference call with investors, according to a syndicate source.

Citigroup Global Markets Inc. is the left bookrunner for the Rule 144A and Regulation S for life offering. Barclays, BofA Merrill Lynch, BMO Securities, Fifth Third Bank, J.P. Morgan Securities LLC, SMBC Nikko, Deutsche Bank Securities Inc., Goldman Sachs & Co and MUFG are the joint bookrunners.

The notes become callable after five years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

The Indianapolis-based manufacturer of transmissions and hybrid-propulsion systems plans to use the proceeds for general corporate purposes.

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