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American Axle unit accepts tenders for $137.8 million of 5¼% notes
By Susanna Moon
Chicago, Sept. 18 - American Axle & Manufacturing Holdings, Inc. said that investors tendered $137.8 million principal amount of its wholly owned subsidiary American Axle & Manufacturing, Inc.'s $250 million of 5¼% senior notes due 2014 by the early tender time at 5 p.m. ET on Sept. 17.
The company accepted for purchase all notes tendered by the early deadline, according to a press release.
The consents received were enough to amend the notes, and the company entered into a supplemental indenture that eliminates most of the covenants and default provisions.
The total purchase price is $1,067 per $1,000 principal amount of notes tendered by the early deadline.
The tender offer will expire at 11:59 p.m. ET on Oct. 1. Tendered notes may no longer be withdrawn.
Holders who tender their notes after the early deadline will receive $1,037 per $1,000 of notes
The company also will pay accrued interest up to but not including the payment date.
The company said on Sept. 4 that its subsidiary was tendering for any and all of its $250 million of outstanding 5¼% notes.
The tender offer was conditioned on the completion of an offering of senior notes.
American Axle priced $550 million of 10-year senior notes at par to yield 6 5/8% on Sept. 4, as previously reported by Prospect News.
The company said that following the offering, it also intends to redeem $42.5 million of its 9¼% senior secured notes due 2017. As of June 30, $382.5 million of the 9¼% notes remain outstanding.
D.F. King & Co., Inc. (800 769-4414 or, for banks and brokers, 212 269-5550) is the tender and information agent.
Bank of America Merrill Lynch (888 292-0070 and collect 980 387-3907) and J.P. Morgan Securities LLC (800 245-8125 and collect 212 270-0761) are the dealer managers.
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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