PE-Backed Allison Transmission Prices IPO

Allison Transmission Holdings Inc., a maker of automatic transmissions for trucks, buses and military vehicles, said it expects its initial public offering of 21.7 million shares to be priced between $22 and $24 apiece, Reuters reported Thursday. Indianapolis-based Allison Transmission — which was bought by private equity companies Carlyle and Onex from General Motors Inc in 2007 — had filed for an IPO of up to $750 million in March last year.

(Reuters) – Allison Transmission Holdings Inc, a maker of automatic transmissions for trucks, buses and military vehicles, said it expects its initial public offering of 21.7 million shares to be priced between $22 and $24 apiece.

Indianapolis-based Allison Transmission — which was bought by private equity companies Carlyle and Onex from General Motors Inc in 2007 — had filed for an IPO of up to $750 million in March last year.

In a filing with the U.S. Securities and Exchange Commission, the company said its selling stockholders will offer all the shares in the IPO.

At the midpoint of the expected price range, the offering will raise about $500 million.

Funds backed by Carlyle and Onex will each hold 42.9 percent stake in the company after the offering.

BofA Merrill Lynch, Citigroup and J.P. Morgan are lead underwriters to the offering.

For the year ended December 31, 2011, the company earned $103 million on net sales of $2.16 billion.

The automatic transmission maker said it will pay quarterly dividends after the offering, starting with a dividend of 6 cents per share in the second quarter of 2012, according tot he regulatory filing.