Allison Transmission Cuts Interest Costs With Term Loan Repricing
Indianapolis-based Allison Transmission Holdings has successfully lowered the interest rate on its $508 million term loan by 25 basis points. The adjustment, finalized June 11, keeps the original March 2031 maturity date intact while easing the company’s annual debt service obligations by approximately $1.3 million.
The repricing amendment to the company’s existing credit agreement brings the interest rate margin down to 1.50% for SOFR loans or 0.50% for base rate loans. Allison's Chief Financial Officer and Treasurer, Scott Mell, described the move as a strategic step in the company’s broader approach to capital structure. He noted that the decision reflects a commitment to disciplined balance sheet management, ensuring the company remains positioned to navigate shifting market demands across its infrastructure, energy, and transportation sectors.
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