American Axle driving by with $600 million eight-year senior notes; initial talk in 5% area

By Paul A. Harris

Portland, Ore., Aug. 16 – American Axle & Manufacturing, Inc. plans to price a $600 million public offering of senior notes due Oct. 1, 2029 (existing ratings B2/B) in a Monday drive-by following a conference call with investors, according to market sources.

Initial guidance is in the 5% area.

BofA Securities Inc. is the left bookrunner. Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC and BMO Capital Markets Corp. are the joint bookrunners.

PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are the senior co-managers. Citizens Capital Markets Inc., Huntington Investment Co., Mizuho Securities USA Inc., KeyBanc Capital Markets Inc. and HSBC Securities (USA) Inc. are the co-managers.

The eight-year notes become callable after three years at par plus 50% of the coupon.

The Detroit-based drivetrain components manufacturer plans to use the proceeds plus cash on hand to fully redeem its 6¼% notes due 2025.

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