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Bulletin: Allison Transmission Inc. Ratings Not Affected By Decision To Pay PIK Interest On Toggle Notes
Standard & Poors, April 2009
Abstract
NEW YORK (Standard & Poor's) April 28, 2009--Standard & Poor's Ratings Services said today that its ratings on Allison Transmission Inc. (B/Negative/--) are not affected by the company's election to make a payment-in-kind (PIK) interest payment on its 11.25% senior unsecured toggle notes due 2015. The decision affects the interest payment scheduled for Nov. 1, 2009, and will result in an increase to the principal amount of the notes as of that date (and possibly on future dates if Allison elects not to resume cash payments for future interest periods). So-called 'toggle notes' are designed to facilitate a switching back and forth between cash and PIK distributions, often at the issuer's discretion. Under our criteria for toggle notes, we will...
Companies mentioned in this report are: Allison Transmission Inc.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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