American Axle & Manufacturing Holdings, Inc. (AAM) has announced the pricing and upsizing of its senior secured notes 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, and the offering of the $1.25 billion 7.750% senior unsecured notes due 2033 was 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 several purposes, including paying the cash consideration for a pending business combination with Dowlais Group PLC, repaying outstanding borrowings under the existing credit facilities of Dowlais, funding a change of control offer for certain outstanding notes of Dowlais, and redeeming some of the issuer's outstanding notes.
The press release also mentions that the offering is subject to the satisfaction of customary closing conditions and that the notes have not been registered under the Securities Act of 1933, as amended.
The press release does not constitute a notice of redemption with respect to the issuer’s outstanding unsecured 6.50% senior notes due 2027 or its outstanding unsecured 6.875% senior notes due 2028.
The offering is available only to qualified institutional buyers or non-U.S. persons outside the United States, and the notes will be subject to restrictions on transferability and resale.
The press release emphasizes that it shall not constitute an offer to sell or a solicitation of an offer to purchase any securities and shall not constitute an offer, solicitation, or sale in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful. 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.
