Allison Transmission Announces Repricing of $646 Million Term Loan due 2026

Allison Transmission

INDIANAPOLIS — Allison Transmission Holdings, Inc. (NYSE: ALSN), the largest global provider of commercial duty fully-automatic transmissions, today announced that on October 11, 2019, it completed an opportunistic repricing of its existing $646 million term loan due March 29, 2026 (the “Term Loan”) through an amendment (the “Amendment”) to its second amended and restated credit agreement (as amended, the “Credit Agreement”).

The Amendment reduced the applicable interest rate margin on the Term Loan by 25 basis points, resulting in an interest rate margin that is either 1.75 percent per annum for LIBOR rate loans or 0.75 percent per annum for base rate loans. The Term Loan maturity date of March 29, 2026, and all other material provisions under the Credit Agreement remain unchanged.

“The interest rate reduction on our Term Loan will reduce annual cash interest expense by approximately $1.6 million,” said Allison Transmission Sr. VP/Chief Financial Officer and Treasurer, Frederick Bohley. “This repricing transaction reaffirms Allison’s commitment to prudent balance sheet management and its well-defined approach to capital structure and allocation.”

About Allison Transmission

Allison Transmission (NYSE: ALSN) is the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Allison transmissions are used in a variety of applications including refuse, construction, fire, distribution, bus, motorhomes, defense and energy.

Founded in 1915, the company is headquartered in Indianapolis, Ind. With a market presence in more than 80 countries, Allison has regional headquarters in the Netherlands, China, and Brazil with manufacturing facilities in the U.S., Hungary and India. Allison also has approximately 1,400 independent distributor and dealer locations worldwide.