Allison Transmission launches $189 million add-on term loan B-3

By Sara Rosenberg

New York, Nov. 12 – Allison Transmission Inc. launched without a call a fungible $189 million add-on senior secured covenant-light term loan B-3 due Aug. 23, 2019 with price talk of Libor plus 250 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The add-on has 101 soft call protection for six months, the source said.

Citigroup Global Markets Inc. is the arranger on the deal.

Proceeds will be used to refinance term loan B-2 loans due 2017.

Commitments are due at 5 p.m. ET on Nov. 19.

In addition, the company launched an amendment for existing term loan B-3 lenders only to eliminate the term loan B-3 pricing grid step-up to Libor plus 275 bps when total senior secured leverage is above 3.5 times, the source continued.

Lenders are being offered a 12.5 bps amendment fee.

Existing term loan B-3 lenders that do not consent to the amendment will be replaced, the source added.

Closing on the transaction is expected on Nov. 30.

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

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