American Axle driving by with $400 million eight-year senior notes; initial talk 7%-7¼%

By Paul A. Harris

Portland, Ore., June 9 – American Axle & Manufacturing, Inc. plans to price a $400 million public offering of senior notes due July 2028 (confirmed B2/existing B-) in a Tuesday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial price talk has the notes coming to yield 7% to 7¼%, a trader said.

BofA Securities Inc. is the left bookrunner. Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the joint bookrunners.

BMO Capital Markets Corp., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are the senior co-managers.

Citizens Capital Markets Inc., Mizuho Securities USA Inc., HSBC Securities (USA) Inc. and Huntington Investment Co. are the co-managers.

The eight-year notes come with three years of call protection and feature a three-year 35% equity clawback and a 101% poison put.

The Detroit-based tier 1 supplier of automotive components plans to use the proceeds to fund the redemption of all of its outstanding 6 5/8% notes, with the remainder to be used for general corporate purposes, which may include debt repayment.

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