American Axle accepts early tenders for $172.58 million 7 7/8% notes

By Jennifer Chiou

New York, March 1 - American Axle & Manufacturing Holdings, Inc. subsidiary American Axle & Manufacturing, Inc. accepted early tenders for $172,581,000 of its 7 7/8% senior notes due 2017, according to an 8-K filing with the Securities and Exchange Commission.

As reported, the company is soliciting consents to some proposed amendments to the indenture governing the notes to eliminate most of the covenants and some default provisions applicable to the notes.

The company entered into a first supplemental indenture, which became operative on March 1.

The total purchase price for notes tendered by 5 p.m. ET on Feb. 28, the early tender time, was $1,030 per $1,000 principal amount of notes, which includes a $25.00 early tender premium. Settlement for these notes took place on March 1.

Holders who tender after the early tender time and prior to 11:59 p.m. ET on March 14, the expiration time, are not eligible for the early tender premium and will instead receive $1,005 per $1,000 of notes.

The company will also pay accrued interest from the most recent interest payment date up to but not including the applicable settlement date.

Holders may not tender their notes without delivering consents to the amendments or vice versa.

The tender offer is subject to a financing condition but is not conditioned upon the successful completion of the consent solicitation. Adoption of the amendments, however, requires the consent of holders representing at least a majority of the outstanding principal amount of notes.

The tender and information agent is D.F. King & Co., Inc. (800 769-4414 or, for banks and brokers, 212 269-5550). BofA Merrill Lynch (888 292-0070 or collect 980 387-3907) and J.P. Morgan Securities LLC (800 245-8125 or collect 212 270-0761) are the dealer managers and solicitation agents.

American Axle is a Detroit-based producer of driveline and drivetrain systems and related components and chassis modules for the automotive industry. It launched the offer on Feb. 14.

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