New Issue: American Axle prices $300 million 10-year notes at par to yield 7 7/8%

By Paul A. Harris

St. Louis, Feb. 22 - American Axle & Manufacturing, Inc. priced a $300 million issue of 10-year senior notes (Ba3/BB) at par to yield 7 7/8% in a quick-to-market transaction on Thursday, according to market sources.

The yield came in the middle of the 7¾% to 8% price talk.

JP Morgan and Banc of America Securities LLC were joint bookrunners for the Securities and Exchange Commission-registered issue.

Proceeds will be used to repay revolver debt and for general corporate purposes.

The Detroit company designs, engineers and manufactures driveline systems for light trucks and SUVs.

Issuer:	American Axle & Manufacturing, Inc.
Amount:	$300 million
Maturity:	March 1, 2017
Security description:	Senior notes
Bookrunners:	JP Morgan, Banc of America Securities
Senior co-managers:	ABN Amro, Wachovia Securities
Co-managers:	BNP Paribas, Comerica Securities, KeyBanc Capital Markets, Lazard Capital Markets, Merrill Lynch & Co., Mizuho Securities USA Inc., Piper Jaffray, SunTrust Robinson Humphrey
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	314 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until March 1, 2012, then at a premium
Trade date:	Feb. 22
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	7¾% to 8%

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