Published on 3/12/2018 in the Prospect News High Yield Daily.
New Issue: American Axle prices upsized $400 million eight-year notes at par to yield 6¼%
By Paul A. Harris
Portland, Ore., March 12 – American Axle & Manufacturing, Inc. priced an upsized $400 million issue of eight-year senior notes (B2/B/BB-) at par to yield 6¼% in a Monday drive-by, according to market sources.
The issue size was increased from $350 million.
The yield printed in the middle of yield talk in the 6¼% area and at the tight end of the 6¼% to 6 3/8% initial guidance.
Citigroup Global Markets Inc. was the left bookrunner. Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and RBC Capital Markets LLC were the joint bookrunners.
The Detroit-based manufacturer and designer of driveline and drivetrain systems plans to use the proceeds, plus cash on hand, to refinance its 6¼% senior notes due 2021. The additional proceeds resulting from the $50 million upsizing of the deal will be used to reduce the cash portion of the tender.
| Issuer: | American Axle & Manufacturing, Inc.
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | March 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and RBC Capital Markets LLC
|
| Senior co-managers: | BMO Securities and PNC Capital Markets LLC
|
| Co-managers: | Citizens Capital Markets Inc., Huntington, U.S. Bancorp Investments Inc., KeyBanc Capital Markets LLC and HSBC Securities (USA) LLC
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 345 bps
|
| First call: | Make-whole at Treasuries plus 50 bps until March 15, 2021, then callable at 103.125
|
| Equity clawback: | 35% at 106.25 until March 15, 2021
|
| Trade date: | March 12
|
| Settlement date: | March 26
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6¼% area
|
| Marketing: | Quick to market
|
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