Moody’s rates American Axle loan Ba1

Moody’s Investors Service said it rated American Axle & Manufacturing Inc.’s planned $650 million senior secured term loan Ba1 and revised the outlook to stable from positive.

Concurrently, the agency affirmed its ratings for American Axle, including the Ba1 rating on its outstanding term loan and B2 ratings on its notes.

Loan proceeds, cash and revolver borrowings will be used to pay off the loan due in 2024.

“The stable outlook reflects Moody's expectation that the recovery of automotive vehicle volumes will continue in North America through 2023, supporting modest improvement in operating results. The stable outlook also anticipates that solid free cash flow will be largely utilized for debt repayment, with the possibility of smaller tuck-in acquisitions to supplement increased penetration of electric driveline opportunities,” the agency said in a press release.

© 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.