American Axle lifts term loan B to $675 million, tightens pricing

By Sara Rosenberg

New York, Dec. 7 – American Axle & Manufacturing Inc. upsized its seven-year term loan B to $675 million from $650 million, according to a market source.

Also, in the morning, prior to the upsizing, price talk on the term loan was changed to a range of SOFR plus 350 basis points to 375 bps from SOFR plus 375 bps, and then the spread firmed at SOFR plus 350 bps in the afternoon, the source said.

Furthermore, the original issue discount on the term loan was tightened in the morning to 97 from 96.

The term loan still has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

JPMorgan Chase Bank, Barclays, BMO Capital Markets, BofA Securities Inc., Citigroup Global Markets Inc., Mizuho and RBC Capital Markets are the lead arrangers on the deal. JPMorgan is the administrative agent.

Proceeds will be used to help refinance an existing term loan B. As a result of the upsizing, the amount being borrowed under the company’s existing revolving credit facility for the refinancing is being reduced.

American Axle is a Detroit-based producer of driveline and drivetrain systems and related components and chassis modules for the automotive industry.

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