Allison Transmission to sell $500 million senior notes due 2027

By Paul A. Harris

Portland, Ore., Sept. 11 – Allison Transmission Holdings, Inc. announced in a Monday press release that its wholly owned subsidiary, Allison Transmission, Inc. intends to commence an offering of up to $500 million in aggregate principal amount of senior unsecured notes due 2027.

The company is also seeking an amendment to its credit agreement in order to reduce the interest rate margin on its term B-3 loan due 2022, increase the commitments under its revolving credit facility to $550 million from $450 million and amend certain other provisions.

Proceeds will be used to repay $200 million of the term B-3 loan, with the remaining amount to be used for general corporate purposes.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

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