American Axle to use proceeds from $1.2 billion senior notes to help finance Metaldyne acquisition

By Paul A. Harris

Portland, Ore., Feb. 23 – American Axle & Manufacturing Holdings Inc. plans to use proceeds from the sale of a bridged $1.2 billion offering of senior notes to help fund its acquisition of Metaldyne Performance Group Inc., according to a presentation posted with the Securities and Exchange Commission on Thursday.

Other tranches of the financing include an $800 million revolving credit facility, a $100 million term loan A and a $1.55 billion term loan B.

American Axle is requesting commitments to its credit agreement by March 8.

As reported, J.P Morgan Securities LLC is the lead bank on the debt.

Under the merger agreement, Metaldyne is being bought for about $1.6 billion in cash and stock, plus the assumption of $1.7 billion in net debt.

Closing is expected in the first half of 2017.

American Axle is a Detroit-based manufacturer and designer of driveline and drivetrain systems and related components and modules, chassis systems, electric drive systems and metal-formed products. Metaldyne is a Plymouth, Mich.-based provider of highly engineered lightweight components for use in powertrain and suspension applications for the vehicle markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.