By Paul A. Harris
Portland, Ore., Oct. 31 - American Axle & Manufacturing Holdings, Inc. priced a $200 million issue of non-callable eight-year senior notes (B1/B) at par to yield 7¾% on Monday, according to market sources.
The yield printed at the tight end of the 7¾% to 8% price talk.
J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the joint bookrunners for the quick-to-market transaction.
Proceeds will be used for general corporate purposes, including the repayment of amounts outstanding under the company's revolver.
The Detroit-based company supplies driveline components to General Motors Corp.'s rear-wheel-drive light trucks and SUVs in North America, and provides almost all of General Motors' rear axles and front four-wheel-drive and all-wheel-drive axles.
| Issuer: | American Axle & Manufacturing Holdings, Inc.
|
| Amount: | $200 million
|
| Maturity: | Nov. 15, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch
|
| Senior co-managers: | RBC Capital Markets, US Bancorp
|
| Co-manager: | Huntington Investment Co.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 594 bps
|
| Call protection: | Non-callable, with Treasuries plus 50 bps make-whole provision
|
| Change of control put: | 101%
|
| Trade date: | Oct. 31
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Off shelf
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Quick to market
|
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