American Axle amends loan, revising pricing and leverage ratio

By Sara Rosenberg

New York, Dec. 12 - American Axle & Manufacturing Holdings Inc. amended its credit facility, changing the pricing grid (see table) and revising the maximum leverage ratio to 2.75 to 1.00 at the end of any fiscal quarter, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

In addition, the amendment established the minimum net worth covenant as 75% of consolidated net worth as of Dec. 31 and changed the consolidated net worth to permit adjustments for special charges incurred after Dec. 31.

The amendment was completed on Dec. 11.

JPMorgan is the administrative agent on the deal.

American Axle is a Detroit-based manufacturer of driveline systems and related powertrain components and chassis modules for light trucks, sport utility vehicles, and passenger cars and crossover vehicles.

Table: Amended Pricing Grid

Index Debt Ratings Eurodollar Spread Commitment Fee

BBB-/Baa3 1.25% 0.250%

BB+/Ba1 1.50% 0.350%

BB/Ba2 2.00% 0.375%

BB-/Ba3 2.25% 0.400%

B+/B1 2.50% 0.500%

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