Allison Transmission Reprices $508M Term Loan by 25bps, Cuts $1.3M Interest
ALSN•Allison Transmission repriced its $508 million term loan due March 2031 by reducing the interest rate margin by 25 basis points to 1.50% for SOFR loans and 0.50% for base rate loans. This amendment is projected to cut annual cash interest expense by approximately $1.3 million.
1. Term Loan Repricing
On June 11, 2026, Allison Transmission executed an amendment to its credit agreement, repricing a $508 million term loan maturing March 13, 2031. The amendment reduces the interest rate margin by 25 basis points, setting the margin at 1.50% per annum for SOFR loans and 0.50% per annum for base rate loans.
2. Annual Interest Savings
The lowered margin is expected to reduce annual cash interest expense by approximately $1.3 million. All other material provisions, including the loan maturity date, remain unchanged, reflecting Allison’s disciplined approach to capital structure and balance sheet management.
