American Axle amends loan, waiving compliance with some covenants

By Sara Rosenberg

New York, July 7 - American Axle & Manufacturing Holdings Inc. amended its credit facility, waiving through July 30 financial covenants relating to secured debt leverage and interest coverage, and waiving the collateral coverage requirement, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

During the waiver period, the company will be required to maintain a daily minimum liquidity of $100 million and will be limited in its ability to incur, refinance or prepay certain debt, make investments and make restricted payments.

As a condition of the waiver, the company provided a security interest in domestic cash and cash equivalents.

The amendment was completed on June 30.

JPMorgan is the administrative agent on the deal.

American Axle is a Detroit-based engineer, designer and manufacturer of driveline and drivetrain systems, and related components and chassis modules for automotive industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.