S&P rates American Axle notes B-

S&P said it assigned its B- issue and 6 recovery ratings to American Axle & Manufacturing Inc.'s proposed $400 million of senior unsecured notes. The 6 recovery rating indicates S&P’s expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of a default.

American Axle intends to use the proceeds to redeem all of its remaining $350 million principal outstanding under its 6 5/8% senior unsecured notes, including accrued interest.

“We expect the transaction to be leverage-neutral,” S&P said in a press release.

The notes rank pari passu with American Axle's senior debt of the issuer and guarantors. American Axle & Manufacturing Holdings Inc., Metaldyne Performance Group Inc. and the subsidiary guarantors will, jointly and severally, guarantee on an unsecured basis the issuer's obligations under the notes and the indenture.

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