New Issue: American Axle prices $400 million 6 7/8% eight-year notes at par

By Paul A. Harris

Portland, Ore., June 9 – American Axle & Manufacturing, Inc. priced a $400 million issue of eight-year senior notes (B2/B-) at par to yield 6 7/8% in a Tuesday drive-by, according to market sources.

BofA Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC.

The yield printed at the tight end of yield talk in the 7% area and tighter than the 7% to 7¼% initial talk.

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.

Issuer:	American Axle & Manufacturing, Inc.
Amount:	$400 million
Maturity:	July 1, 2028
Securities:	Senior notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC
Senior co-managers:	BMO Capital Markets Corp., PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
Co-managers:	Citizens Capital Markets Inc., Mizuho Securities USA Inc., HSBC Securities (USA) Inc. and Huntington Investment Co.
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	620 bps
Call protection:	Three years
Trade date:	June 9
Settlement date:	June 12
Ratings:	Moody's: B2
	S&P: B-
Distribution:	SEC registered
Price talk:	7% area

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