AxleTech sets structure on $265 million credit facility ahead of Thursday launch

By Sara Rosenberg

New York, Sept. 28 - AxleTech International firmed up the structure on its proposed $265 million credit facility as the deal gears up to launch into syndication via a bank meeting Thursday.

The facility will consist of a $50 million six-year revolver, a $130 million seven-year first-lien term loan B and an $85 million 71/2-year second-lien term loan, with price talk on all three tranches expected to emerge on the day of the launch, a market source told Prospect News.

Previously it was known the deal would have this revolver, first-lien, second-lien structure, but tranche sizes were unavailable because they were still somewhat fluid.

Merrill Lynch, JPMorgan and CIBC are the lead banks on the deal, with Merrill the left lead.

Proceeds will be used to help fund The Carlyle Group's leveraged buyout of the company from Wynnchurch Capital and other minority shareholders.

AxleTech is a Troy, Mich., supplier of axles, brakes and other drivetrain components for off highway and specialty vehicles to the commercial and military markets.

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