American Axle talks $400 million seven-year secured notes at 9½%-9¾% with about 1 point of OID

By Paul A. Harris

St. Louis, Dec. 9 - American Axle & Manufacturing, Inc. set price talk for its $400 million offering of seven-year senior secured first-lien notes at a 9½% to 9¾% yield, with about 1 point of original issue discount, an informed source told Prospect News Wednesday.

The deal is set to price on Thursday morning.

J.P. Morgan Securities Inc. and Bank of America Merrill Lynch are joint bookrunners for the Rule 144A and Regulation S for life notes. Comerica Investments, KeyBanc Capital Markets Inc. and U.S. Bancorp are co-managers.

The notes come with four years of call protection. However 10% of the notes will become callable immediately at 103.

The company's existing first-lien ratings are B3 from Moody's Investors Service and B- from Standard & Poor's.

Proceeds will be used to repay term loan debt.

The prospective issuer is a Detroit-based automotive supplier.

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