American Axle & Manufacturing Announces Pricing of $550 Million in Senior Notes
DETROIT, Sept. 4, 2012 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) ("Holdings") announced today that its wholly-owned subsidiary, American Axle & Manufacturing, Inc. ("AAM"), has priced its previously announced offering of $550 million in aggregate principal amount of 6.625% senior notes due 2022 at an issue price of 100% in a public offering, subject to customary closing conditions.
The notes will be unconditionally guaranteed on a senior unsecured basis by Holdings and certain of AAM's present and future domestic subsidiaries.
AAM intends to use the net proceeds to fund the repurchase of any and all of its outstanding 5.25% Senior Notes due 2014 in its concurrent tender offer and consent solicitation, including the payment of accrued interest and any applicable early tender premium, to fund the partial redemption of its 9.25% Senior Secured Notes due 2017 pursuant to the terms thereof and to fund certain pension obligations and for other general corporate purposes.
J.P. Morgan, BofA Merrill Lynch, Barclays, Citigroup and RBC Capital Markets are joint book-running managers for the debt offering. When available, copies of the prospectus supplement and the accompanying base prospectus for the offering can be obtained from J.P. Morgan toll-free at (866) 803-9204.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any of these 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. This offering may be made only by means of a prospectus supplement and accompanying base prospectus.
AAM is a world leader in the manufacture, engineering, design and validation of driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover utility vehicles and commercial vehicles. In addition to locations in the United States (Michigan, Ohio, Indiana and Pennsylvania), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden and Thailand.
Cautionary Statement Concerning Forward-Looking Statements
In this press release, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "expect," "anticipate," "intend," "project," and similar words of expressions, as well as statements in future tense, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: global economic conditions, including the impact of the current sovereign debt crisis in the Euro-zone; reduced purchases of our products by General Motors Company ("GM"), Chrysler Group LLC ("Chrysler") or other customers; reduced demand for our customers' products (particularly light trucks and sport utility vehicles ("SUVs") produced by GM and Chrysler); liabilities arising from warranty claims, product recall, product liability and legal proceedings to which we are or may become a party; our ability to realize the expected revenues from our new business backlog; our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely basis; our ability to achieve the level of cost reductions required to sustain global cost competitiveness; our ability to attract new customers and programs for new products; supply shortages or price increases in raw materials, utilities or other operating supplies for us or our customers as a result of natural disasters or otherwise; changes in liabilities arising from pension and other postretirement benefit obligations; our ability to respond to changes in technology, increased competition or pricing pressures; price volatility in, or reduced availability of, fuel; our ability to maintain satisfactory labor relations and avoid work stoppages; our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid work stoppages; risks inherent in our international operations (including adverse changes in political stability, taxes and other law changes, potential disruption of production and supply, and currency rate fluctuations); availability of financing for working capital, capital expenditures, research & development ("R&D") or other general corporate purposes, including our ability to comply with financial covenants; our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes; our ability to develop and produce new products that reflect market demand; lower-than-anticipated market acceptance of new or existing products; adverse changes in laws, government regulations or market conditions affecting our products or our customers' products (such as the Corporate Average Fuel Economy ("CAFE") regulations); our ability to consummate and integrate acquisitions and joint ventures; risks of noncompliance with environmental regulations or risks of environmental issues that could result in unforeseen costs at our facilities; our ability to attract and retain key associates; other unanticipated events and conditions that may hinder our ability to compete. It is not possible to foresee or identify all such factors and we make no commitment to update any forward-looking statement or to disclose any facts, events or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.
For more information...
Christopher M. Son
Director, Investor Relations,
Corporate Communications & Marketing
Or visit the AAM website at www.aam.com.
SOURCE American Axle & Manufacturing Holdings, Inc.