Allison Transmission, a designer and manufacturer of propulsion solutions for commercial and defense vehicles, entered into a fourth amendment to its credit agreement, increasing the commitments under its revolving credit facility from $650 million to an aggregate principal amount of $750 million. According to an 8K filed with the SEC, Citibank is the administrative agent for the agreement.
The amendment also extended the maturity date of the facility from 2025 to March 13, 2029, and removed a 0.1% credit spread adjustment to the SOFR benchmark for all available interest periods.
In addition, pursuant to the amendment, Allison Transmission refinanced $518 million of term loan debt, paid down approximately $100 million of existing term loan debt, extended the maturity date thereof from 2026 to March 13, 2031, and removed a 0.1% credit spread adjustment to the SOFR benchmark for all available interest periods while maintaining a SOFR plus 175 interest rate.
“The successful closing of this amendment supports our longstanding commitment to prudent balance sheet management and our opportunistic approach to the capital markets with a focus on a low-cost, flexible and pre-payable debt structure with long-date maturities,” Fred Bohley, senior vice president, CFO and treasurer at Allison Transmission. “As a result of this offering, we were able to increase the capacity under our revolving credit facility and reduce the effective interest rate on our term loan debt while extending out maturities so that our earliest maturity on our long-term debt is now in 2027.”
