New Issue: American Axle prices $200 million 5.25-year 5 1/8% notes at par

By Paul A. Harris

Portland, Ore., Nov. 5 - American Axle & Manufacturing, Inc. launched and priced a $200 million issue of 5.25-year senior notes (/B+/B) at par to yield 5 1/8% on Tuesday, according to a market source.

The yield printed at the tight end of yield talk that was set in the 5¼% area.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc. and RBC Capital Markets were the joint bookrunners.

The Detroit-based manufacturer of vehicle drivetrain and chassis systems plans to use the proceeds to redeem its 9¼% senior notes due 2017.

Issuer:	American Axle & Manufacturing, Inc.
Amount:	$200 million
Maturity:	Feb. 15, 2019
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., RBC Capital Markets
Coupon:	5 1/8%
Price:	Par
Yield:	5 1/8%
Spread:	365 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2015, then callable at 102.563, 101.281, par on and after Nov. 15, 2017
Equity clawback:	35% at 105.125 until Nov. 15, 2015
Change-of-control put:	101%
Trade date:	Nov. 5
Settlement date:	Nov. 12
Ratings:	Standard & Poor's: B+
	Fitch: B
Distribution:	SEC registered
Price talk:	5¼% area
Marketing:	Quick to market

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