Loan & DebtJun 16, 2026, 04:17 PM
Allison refinances $508M term loan, cuts interest margin by 0.25%
AI Summary
Allison Transmission Holdings Inc. refinanced approximately $508 million of its term loan debt due March 13, 2031, through Amendment No. 6 to its Credit Agreement. This opportunistic repricing reduced the applicable interest rate margin on the refinanced loans by 0.25%, leading to an estimated annual cash interest expense reduction of $1.3 million. The maturity date and all other material provisions of the term loan remain unchanged.
Key Highlights
- Refinanced approximately $508 million of term loan debt due March 13, 2031.
- Reduced the applicable interest rate margin on the refinanced loans by 0.25%.
- New interest rate margin is 1.50% per annum for SOFR Loans or 0.50% for Base Rate Loans.
- Expected to reduce annual cash interest expense by approximately $1.3 million.
- The term loan's maturity date of March 13, 2031, remains unchanged.
- Amendment No. 6 to the Credit Agreement was entered into on June 11, 2026.
Price Impact
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