American Axle to price $350 million eight-year notes on Monday

By Paul A. Harris

Portland, Ore., March 12 – American Axle & Manufacturing, Inc. plans to price $350 million of eight-year senior notes (B2/B/BB-) in a Monday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial price talk is 6¼% to 6 3/8%, a trader said.

Citigroup Global Markets Inc. is the left bookrunner for the public offering. Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and RBC Capital Markets LLC are the joint bookrunners.

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

The notes feature a make-whole call at Treasuries plus 50 bps for the first three years, then become callable at par plus 50% of the coupon. They also feature a three-year 35% equity clawback at par plus the coupon and a 101% poison put.

The Detroit-based manufacturer and designer of driveline and drivetrain systems plans to use the proceeds to refinance its 6¼% senior notes due 2021.

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