Allison Completes Partial Redemption of 4.750% Senior Notes due 2027

The redemption reduced outstanding note principal, with $300 million of the 4.750% notes due 2027 remaining.

Rhea-AI Summary

Allison Transmission Holdings (ALSN) completed a partial redemption of $100 million of its senior notes on September 30, 2026.

The redeemed notes carry a 4.750% interest rate and mature in 2027. The redemption price was 100.00% of principal, plus accrued and unpaid interest up to, but not including, the redemption date. Allison exercised its optional redemption right under the indenture governing the notes, dated September 26, 2017. Following the redemption, $300 million in aggregate principal remains outstanding.

2 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 2 points

How the balance works

Positive

• Moderate point$100 million principal redemption completed September 30, 2026, reducing debt. 1% of market cap
• Minor point100.00% of principal redemption price required no premium above principal.

Negative

• Minor pointAccrued and unpaid interest was payable in addition to the principal redemption price.
• Minor point$300 million of 4.750% senior notes due 2027 remains outstanding.

Key Figures

Principal amount redeemed: $100 million Redemption price: 100.00% of principal plus accrued and unpaid interest Principal amount remaining: $300 million +1 more

Principal amount redeemed

$100 million

Partial redemption of the notes

Redemption price

100.00% of principal plus accrued and unpaid interest

Paid on the redemption date

Principal amount remaining

$300 million

Notes outstanding after the partial redemption

Interest rate

4.750%

Senior notes due 2027

Key Terms

senior notes, indenture, optional redemption right

3 terms

senior notes financial

"4.750% Senior Notes due 2027"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

indenture financial

"under the indenture governing the notes"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

optional redemption right financial

"pursuant to its optional redemption right under the indenture"

A contractual provision that allows one party—most commonly the issuer of a bond, preferred share or other debt-like security—to redeem (repurchase and cancel) the security before its scheduled maturity at that party's discretion under the terms set out in the security document. The provision specifies when the redemption can occur, the price or formula used to calculate the redemption payment, any notice the redeeming party must give, and any conditions or limits on the right; it is distinct from a mandatory redemption (which must be exercised) and from a holder put right (which lets the investor require redemption).

AI-generated analysis. How Rhea-AI works. Not financial advice.

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INDIANAPOLIS, Oct. 2, 2026 /PRNewswire/ -- Allison Transmission Holdings, Inc. (NYSE: ALSN) ("Allison" or the "Company") announced the completion of its partial redemption of $100 million aggregate principal amount of its 4.750% Senior Notes due 2027 (the "notes") on September 30, 2026 (the "redemption date"), pursuant to its optional redemption right under the indenture governing the notes, dated as of September 26, 2017.

On the redemption date, the notes were redeemed at a redemption price of 100.00% of the principal amount thereof plus accrued and unpaid interest to, but not including, the redemption date. Following the completion of the partial redemption, $300 million aggregate principal amount of the notes remain outstanding.

About Allison

Allison (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world.

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SOURCE Allison Transmission Holdings Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much debt did Allison (ALSN) redeem and at what price?

Allison redeemed $100 million in aggregate principal of its 4.750% senior notes due 2027 at 100.00% of principal, plus accrued and unpaid interest. The redemption was completed September 30, 2026, with interest calculated up to, but not including, that date.

How much of Allison's (ALSN) 2027 senior notes remains outstanding after the redemption?

Following the partial redemption, $300 million in aggregate principal of Allison's 4.750% senior notes due 2027 remains outstanding.