American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) has announced the pricing and upsizing of its senior secured and senior unsecured notes. The offering of the $850 million 6.375% senior secured notes due 2032 was upsized from the previously announced $843 million. Additionally, the $1.25 billion 7.750% senior unsecured notes due 2033 were upsized from the previously announced $600 million.
The net proceeds from this offering, together with borrowings under its existing credit agreement and cash on hand, will be used for various purposes, including paying the cash consideration for a pending business combination, repaying outstanding borrowings, funding a change of control offer for certain outstanding notes, and redeeming existing notes.
The issuer will deposit into segregated escrow accounts an amount of cash equal to the gross proceeds from the sale of each series of notes until certain conditions, including the consummation of the combination, have been satisfied or a special mandatory redemption has occurred.
Notably, notwithstanding the upsize of the unsecured notes, the escrow and special mandatory redemption provisions will only apply to $600 million aggregate principal amount of unsecured notes.
It's important to note that the notes have not been registered under the securities act of 1933 and may only be offered or sold to qualified institutional buyers or non-U.S. persons outside the United States.
Following these announcements, the company's shares moved -1.9%, and are now trading at a price of $6.19. For more information, read the company's full 8-K submission here.
