Business Context and Reporting Period
Company: Allison Transmission Holdings, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: February 6, 2013
Event: Entry into Material Definitive Agreements regarding debt refinancing and maturity extension.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on debt restructuring terms.
| Debt Instrument | Amount | Original Maturity | New Maturity | Interest Rate Margin |
|---|---|---|---|---|
| Refinanced Term Loan (Amendment No. 6) | $793.0 million | August 7, 2017 | August 7, 2017 | 3.00% above LIBOR or 2.00% above Prime/Fed Funds |
| Extended Term Loan (Amendment No. 7) | $411.5 million | August 7, 2014 | August 7, 2017 | 3.00% above LIBOR or 2.00% above Prime/Fed Funds |
Material Changes
- Debt Refinancing: The Company refinanced $793.0 million of term loan debt due in 2017 under Amendment No. 6.
- Maturity Extension: The Company extended the maturity of $411.5 million of term loan debt from August 7, 2014, to August 7, 2017 under Amendment No. 7.
- Interest Rate Terms: Both amendments established identical interest rate margins, allowing the borrower to choose between a spread over LIBOR or a spread over the greater of the prime lending rate or the federal funds effective rate.
Guidance, Outlook, and Risks
Management Commentary: The filing contains no forward-looking guidance, outlook, or management commentary regarding future operations or financial performance.
Risks and Contingencies: The filing notes that the summary of the amendments is not complete and is subject to the full text of Amendment No. 6 and Amendment No. 7, filed as Exhibits 10.1 and 10.2. No specific risks or contingencies are detailed in the text of this report.
Investor Verification Checklist
- Verify the full text of Amendment No. 6 and Amendment No. 7 (Exhibits 10.1 and 10.2) for covenants, prepayment penalties, and default provisions not summarized here.
- Confirm the impact of the extended maturity on the Company's liquidity profile and debt service schedule for the 2014-2017 period.
- Review the Company's most recent 10-K or 10-Q to understand the total debt load and leverage ratios in the context of these refinancing actions.