American Axle cuts debt by $150 million, prepays $100 million notes

By Devika Patel

Knoxville, Tenn., Feb. 14 – American Axle & Manufacturing Holdings Inc. reduced gross debt by $150 million in 2019 and prepaid $60 million of its term loan B last quarter.

In addition, subsequent to quarter-end, on Feb. 5, the company redeemed $100 million of its 6.625% senior notes due 2022.

“We reduced our gross debt by $150 million in 2019 and began 2020 with another $100 million prepayment of our senior notes due in 2022,” chairman and chief executive officer David C. Dauch said on the company’s fourth quarter and year ended Dec. 31, 2019 earnings conference call on Friday.

“We are committed to continuing to reduce our debt and further strengthening our balance sheet in 2020,” Dauch said.

“In the fourth quarter of 2019, we prepaid $60 million on our term loan B and in early 2020 we prepaid another $100 million of our senior notes due in 2022,” vice president and chief financial officer Christopher J. May said on the call.

Adjusted EBITDA was $193.5 million for the fourth quarter, compared to $244 million in the fourth quarter of 2018. Full year adjusted EBITDA was $970.3 million, compared to $1,183,900,000 in 2018.

Adjusted free cash flow for the fourth quarter was $116.5 million, compared to $142.4 million for the fourth quarter of 2018. Adjusted free cash flow for full year 2019 was $207.8 million, compared to $322.3 million for full year 2018.

Cash and cash equivalents were $532 million as of Dec. 31, 2019, compared to $476.4 million as of Dec. 31, 2018.

Long-term debt was $3,612,300,000 as of Dec. 31, 2019, compared to $3,686,800,000 as of Dec. 31, 2018.

At the end of the year, the company’s net leverage ratio was 3.2x.

American Axle is a Detroit-based manufacturer and designer of driveline and drivetrain systems and related components and modules, chassis systems, electric drive systems and metal-formed products.

© 2015 Prospect News.
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