Allison Transmission shops $500 million eight-year notes offering; pricing expected Thursday

By Paul A. Harris

Portland, Ore., Sept. 14 – Allison Transmission, Inc. scheduled an investor group lunch in New York and an investor conference call both to get underway at noon ET on Wednesday.

The company plans to price a $500 million offering of eight-year senior notes (Ba3//BB) on Thursday.

Citigroup Global Markets Inc. is the left bookrunner for the Rule 144A and Regulation S for life offering. Barclays, BofA Merrill Lynch, BMO Securities, Fifth Third Bank, J.P. Morgan Securities LLC, SMBC Nikko, Deutsche Bank Securities Inc., Goldman Sachs & Co. and MUFG are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems plans to use the proceeds to refinance a portion of its term loan B.

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