By Paul A. Harris
Portland, Ore., March 9 – American Axle & Manufacturing Inc., a wholly owned subsidiary of American Axle & Manufacturing Holdings Inc., priced $1.2 billion of senior notes (B2/B/BB-) in two tranches, according to market sources.
The deal included $700 million of eight-year notes that priced at par to yield 6¼%. The yield printed at the wide end of the 6% to 6¼% yield talk.
In addition the company priced $500 million of 10-year notes at par to yield 6½%. The yield printed at the wide end of the 6¼% to 6½% yield talk.
J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., RBC Capital Markets LLC, PNC Capital Markets and U.S. Bancorp Investments Inc. were the joint bookrunners.
Proceeds will be used to fund the acquisition of Metaldyne Performance Group Inc., as well as to refinance debt under American Axle's existing senior secured revolving credit facility and certain existing Metaldyne debt, with the remainder, if any, to be used for general corporate purposes.
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.
| Issuer: | American Axle Manufacturing Inc.
|
| Amount: | $1.2 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., RBC Capital Markets, PNC, U.S. Bancorp Investments Inc.
|
| Trade date: | March 9
|
| Settlement date: | March 23
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: BB-
|
| Distribution: | Private
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $700 million
|
| Maturity: | Eight years
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Call protection: | Three years
|
| Price talk: | 6% to 6¼%
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | 10 years
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Call protection: | Five years
|
| Price talk: | 6¼% to 6½%
|
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