Allison Transmission talks $1 billion notes due January 2031 to yield 3¾%-4%; pricing Monday

By Abigail W. Adams

Portland, Me, Nov. 9 – Allison Transmission Inc. talked its $1 billion offering of senior notes due January 2031 (expected Ba3/BB) to come with a yield of 3¾% to 4% with pricing on Monday, according to a market source.

Initial guidance was for a yield in the low 4% area.

The notes are non-callable for 5.25 years.

Citigroup Global Markets Inc. (lead left), BMO Capital Markets Corp., Fifth Third Securities Inc., MUFG, Barclays, BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are joint bookrunners for the Rule 144A and Regulation S offering.

There is a poison put at 101 and an equity clawback of 40% for the first three years.

Proceeds will be used to redeem the company’s 5% senior notes due 2024.

Allison Transmission is an Indianapolis-based transmission and propulsion system manufacturer.

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