Allison to start brief roadshow Tuesday for $550 million eight-year notes

By Paul A. Harris

St. Louis, Oct. 4 - Allison Transmission Inc. will begin a two-day roadshow on Tuesday for $550 million of the overall $1.1 billion of bond financing backing the acquisition of the company.

The deal, launched Thursday by joint bookrunners Citigroup, Lehman Brothers and Merrill Lynch & Co., is comprised of a single tranche of eight-year cash-pay senior notes (Caa1/B-).

The Rule 144A for life notes come with four years of call protection and are expected to price on Thursday.

The financing, which is being used to help fund the acquisition of the company by The Carlyle Group and Onex Corp. from General Motors Corp., also includes toggle notes, which are not in the market yet.

The overall bond portion of the financing is $1.1 billion.

Allison Transmission is a Speedway, Ind., designer and manufacturer of automatic transmissions.

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