S&P rates American Axle notes B

S&P said it assigned its B issue-level rating and 6 recovery rating to American Axle & Manufacturing Inc.'s proposed $350 million senior unsecured notes due 2026.

The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of a payment default.

“We expect the transaction to be roughly leverage neutral, since the company will announce a concurrent tender offer for the outstanding $400 million 6¼% notes due 2021,” S&P said in a news release.

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