Core Viewpoint - American Axle & Manufacturing Holdings, Inc. (AAM) has successfully syndicated bridge financing to support its combination with Dowlais Group plc, enhancing its capital structure and liquidity [1][3]. Financing Details - The bridge financing includes a $843 million Term Loan B, a $843 million 1st Lien Senior Secured Bridge Facility, and a $500 million 2nd Lien Senior Secured Bridge Facility [2]. - AAM has amended its Credit Agreement to extend the maturity date of its Revolving Credit Facility (RCF) and Term Loan A to a new five-year term, increasing RCF commitments to approximately $1.5 billion, an increase of $570 million from the current agreement [2]. Business Outlook - AAM has high revenue visibility with over $20 billion in lifetime revenues secured through 2030 and beyond [6]. - The company is well-positioned for a resurgence in internal combustion engine (ICE) and hybrid vehicle volumes in North America [6]. - The combination is expected to create $300 million in run-rate cost synergies and generate free cash flow [6]. Company Profile - AAM is a leading global Tier 1 Automotive and Mobility Supplier, specializing in driveline and metal forming technologies for electric, hybrid, and internal combustion vehicles [4]. - The company operates over 75 facilities in 16 countries, focusing on sustainable and safer automotive solutions [4].
AAM Announces Successful Syndication Financing and Amendment to Credit Agreement