Allison Transmission is selling notes worth nearly $500 million, The Wall street Journal reports. The U.S. transmission manufacturing company will use the proceeds from the sale of the eight-year bonds to fund its cash tender offer for outstanding senior debt, due in 2015. As a part of the offering, holders of the toggle bonds will receive $1,107.50 for every $1,000 of notes, if it is tendered by April 26, 2011. Citigroup is leading the sale along with Barclays Capital, Deutsche Bank and UBS.

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