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American Axle lifts and extends revolver, gets $150 million term loan
By Marisa Wong
Madison, Wis., Sept. 16 - American Axle & Manufacturing Holdings, Inc.'s wholly owned subsidiary, American Axle & Manufacturing, Inc., further amended and restated its credit agreement dated Jan. 9, 2004 with JPMorgan Chase Bank, NA as administrative agent to increase total commitments under its revolving facility to $523.5 million and extend the maturity to Sept. 13, 2018, according to an 8-K filing with the Securities and Exchange Commission.
The amended and restated credit agreement, which was completed on Friday, also provides for a $150 million senior secured term loan A facility.
The full amount of the term loan must be drawn on or within 30 days after closing in up to two borrowings in dollars. The term loan matures on Sept. 13, 2018 and is prepayable at any time.
The restated credit agreement allows American Axle to increase commitments under the facilities up to an additional $150 million.
Borrowings made under the restated credit facilities may be used for general corporate purposes, including to redeem, repurchase or discharge the company's 9¼% senior secured notes due 2017. The company intends to use proceeds of the term loan to partially redeem the 9¼% notes, the filing said.
Interest is equal to Libor plus an applicable margin of 150 basis points to 300 bps based on the company's ratings.
In addition, some negative covenants under the credit facilities were revised to give the company increased flexibility.
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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