Allison launches $648 million term loan B at Libor plus 175 bps

By Sara Rosenberg

New York, Sept. 24 – Allison Transmission Inc. launched on its lender call on Tuesday a $648 million senior secured covenant-lite term loan B due March 29, 2026 that is talked at Libor plus 175 basis points with a 0% Libor floor and a par issue price, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Citigroup Global Markets Inc. is the sole lead arranger and administrative agent on the deal.

Proceeds will be used to reprice an existing term loan B down from Libor plus 200 bps with a 0% Libor floor.

Commitments from existing lenders are due at 5 p.m. ET on Oct. 7 and commitments from new lenders are due at noon ET on Oct. 8, the source added.

Closing is expected on Oct. 11.

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

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