Published on 12/10/2009 in the Prospect News High Yield Daily.
New Issue: American Axle prices upsized $425 million 9¼% seven-year notes at 98.715 to yield 9½%
By Paul A. Harris
St. Louis, Dec. 10 - American Axle & Manufacturing, Inc. priced an upsized $425 million of 9¼% seven-year senior secured notes (B2/B-/) at 98.715 to yield 9½% on Thursday, according to an informed source.
The yield printed at the tight end of the 9½% to 9¾% yield talk. The issue price was slightly cheap to the approximately 1 point of discount talk.
J.P. Morgan Securities Inc. and Bank of America Merrill Lynch were joint bookrunners for the issue, which was upsized from $400 million.
Co-managers were Comerica Securities, KeyBanc Capital Markets Inc. and U.S. Bancorp Investments, Inc.
Proceeds will be used to repay term loan debt.
The issuer is a Detroit-based automotive supplier.
| Issuer: | American Axle & Manufacturing, Inc.
|
| Face amount: | $425 million, increased from $400 million
|
| Proceeds: | $419,539,000 (approximate)
|
| Maturity: | Jan. 15, 2017
|
| Security description: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Bank of America Merrill Lynch
|
| Co-managers: | Comerica Securities, KeyBanc Capital Markets Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 9¼%
|
| Price: | 98.715
|
| Yield: | 9½%
|
| Spread: | 665 bps
|
| Call features: | Up to $42.5 million callable at 103 once in every 12-month period until Jan. 15, 2014, also make-whole at Treasuries plus 50 bps until Jan. 15, 2014, then callable at 104.625, 102.313, par on and after Jan. 15, 2016
|
| Equity clawback: | 35% at 109.375 until Jan. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 10
|
| Settlement date: | Dec. 18
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S for life
|
| Price talk: | 9½% to 9¾% with about 1 point OID
|
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