New Issue: American Axle prices $550 million 10-year notes at par to yield 6 5/8%

By Paul A. Harris

Portland, Ore., Sept. 4 - American Axle & Manufacturing, Inc. priced a $550 million issue of 10-year senior notes (B2/B/) at par to yield 6 5/8% on Tuesday, according to a market source.

The yield printed at the tight end of price talk set in the 6¾% area.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets and RBC Capital Markets were the joint bookrunners for the quick-to-market deal.

The Detroit-based manufacturer of driveline systems plans to use the proceeds to fund the tender offer for its 5¼% notes due 2014, to fund partial redemption of its 9¼% notes due 2017, to fund certain pension obligations and for general corporate purposes.

Issuer:	American Axle & Manufacturing, Inc.
Amount:	$550 million
Maturity:	Oct. 15, 2022
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., RBC Capital Markets
Senior co-managers:	KeyBanc Capital Markets, US Bancorp
Co-managers:	HSBC, Huntington Investment Co.
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	505 bps
First call:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2017, then callable at 103.313
Equity clawback:	35% at 106.625 until Oct. 15, 2015
Change-of-control put:	101%
Trade date:	Sept. 4
Settlement date:	Sept. 17
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	SEC registered
Price talk:	6¾% area
Marketing:	Quick to market

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