Allison Transmission launches $500 million add-on term loan B-3

By Sara Rosenberg

New York, Dec. 11 - Allison Transmission Holdings Inc. launched on its call on Wednesday a $500 million add-on senior secured covenant-light term loan B-3 due Aug. 23, 2019 that is talked at Libor plus 275 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The add-on has 101 soft call protection until Feb. 26, 2014, the source said.

Citigroup Global Markets Inc. is the lead bank on the deal.

Proceeds will be used to refinance some term loan debt due in 2017.

Commitments are due on Tuesday, and closing is targeted for Dec. 27, the source added.

In addition, the company intends to get a $100 million add-on to its revolver and extend the revolver maturity to 2019 from 2016.

Allison Transmission is an Indianapolis-based automatic transmission company.

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