S&P rates American Axle loan BB+

S&P said it assigned BB+ issue-level and 1 recovery ratings to American Axle & Manufacturing Inc.'s planned $650 million senior secured term loan B due 2029. The 1 recovery rating indicates very high (90%-100%; rounded estimate: 95%) recovery in default.

The ratings are the same as S&P’s on the issuer’s outstanding loans. The B+ issue-level and 5 recovery rating on the company's senior unsecured debt are unchanged, S&P said.

American Axle plans to use the proceeds, $50 million of cash on hand and borrowings of $50 million from its revolver, to repay the remaining $750 million outstanding on its term loan B due 2024.

“Because this is a refinancing transaction, it will not increase the company's leverage,” the agency said in a press release.

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