Allison Transmission breaks; TransUnion up with IPO; Boyd, Mitel Networks set price talk

By Sara Rosenberg

New York, March 31 – Allison Transmission Inc.’s add-on term loan B-3 hit the secondary market on Tuesday with levels quoted above its original issue discount, and TransUnion’s term loan was stronger as the company filed for an initial public offering.

Over in the primary market, Boyd Corp. and Mitel Networks Corp. revealed price talk with launch, and Communications Sales & Leasing Inc. joined this week’s calendar.

Allison Transmission’s $470 million senior secured add-on first-lien term loan B-3 (Ba2/BB+/BB) due Aug. 23, 2019 broke for trading on Tuesday with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the add-on loan is Libor plus 250 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99¾. The add-on, as well as the existing term loan B-3, are getting 101 soft call protection for six months.

The existing term loan B-3 was quoted at par 1/8 bid, par 5/8 offered during the session, the trader said.

During syndication, the new loan was restructured as a fungible add-on to the existing term loan B-3 from an incremental term loan B-4, pricing was lowered from talk of Libor plus 275 bps to 300 bps and the discount was tightened from 99½.

Citigroup Global Markets Inc., Barclays, Fifth Third Bank, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, BMO Capital Markets Corp., Mitsubishi UFJ Securities (USA) Inc. and Sumitomo Mitsui are leading Allison Transmission’s add-on term loan.

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