New Issue: Allison Transmission prices upsized $400 million 10-year notes at par to yield 4¾%

By Paul A. Harris

Portland, Ore., Sept. 21 – Allison Transmission, Inc. priced an upsized $400 million issue of 10-year senior notes (Ba3//BB) at par to yield 4¾% on Thursday, according to a syndicate source.

The issue size was increased from $300 million.

The yield printed at the tight end of yield talk in the 4 7/8% area.

Citigroup Global Markets Inc. was 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 were the joint bookrunners.

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

Issuer:	Allison Transmission, Inc.
Amount:	$400 million, increased from $300 million
Maturity:	Oct. 1, 2027
Securities:	Senior notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Barclays, BofA Merrill Lynch, BMO Securities, Fifth Third Bank, J.P. Morgan Securities LLC, SMBC Nikko, Deutsche Bank Securities Inc., Goldman Sachs & Co., MUFG
Coupon:	4¾%
Price:	Par
Yield:	4¾%
Spread:	247 bps
First call:	Make-whole call at Treasuries plus 50 bps until Oct. 1, 2022, then callable at 102.375
Equity clawback:	40% at 104.75 until Oct. 1, 2020
Trade date:	Sept. 21
Settlement date:	Sept. 26
Ratings:	Moody's: Ba3
	S&P: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	4 7/8% area
Marketing:	Quick to market

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.