New Issue: Allison Transmission priced upsized $1 billion eight-year notes at par to yield 5%

By Paul A. Harris

Portland, Ore., Sept. 14 – Allison Transmission, Inc. priced an upsized $1 billion issue of eight-year senior notes (Ba3//BB) at par to yield 5% on Wednesday, according to a syndicate source.

The issue size was increased from $500 million.

The yield printed at the tight end of the 5% to 5¼% yield talk.

Timing on the deal was accelerated. When announced on Wednesday morning it was scheduled to remain in the market into Thursday.

Citigroup Global Markets Inc. was 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 were the joint bookrunners.

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.

Issuer:	Allison Transmission, Inc.
Amount:	$1 billion, increased from $500 million
Maturity:	Oct. 1, 2024
Securities:	Senior notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Barclays, BofA Merrill Lynch, BMO Securities, Fifth Third Bank, J.P. Morgan Securities LLC, SMBC Nikko, Deutsche Bank Securities Inc., Goldman Sachs & Co, MUFG
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	342 bps
First call:	Oct. 1, 2019 at 102.5
Equity clawback:	40% at 105 until Oct. 1, 2019
Trade date:	Sept. 14
Settlement date:	Sept. 23
Ratings:	Moody's: Ba3
	Fitch: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	5% to 5¼%
Marketing:	Investor call

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