AAM Announces Successful Syndication Financing and Amendment to Credit Agreement
American Axle & Manufacturing Holdings (NYSE: AXL) has successfully syndicated bridge financing to support its announced combination with Dowlais Group plc. The financing includes an $843 million Term Loan B, $843 million 1st Lien Senior Secured Bridge Facility, and $500 million 2nd Lien Senior Secured Bridge Facility.
The company has also amended its Credit Agreement, extending the maturity of its Revolving Credit Facility (RCF) and Term Loan A for five years. The RCF commitments will increase by $570 million to approximately $1.5 billion upon closing of the Combination.
AAM highlighted its strong business outlook, including over $20 billion in lifetime revenues secured through 2030 and beyond in core driveline programs. The combination is expected to generate $300 million in run-rate cost synergies and will expand geographic diversification while maintaining strong North American exposure.
American Axle & Manufacturing Holdings (NYSE: AXL) ha ottenuto con successo un finanziamento ponte sindacato per supportare la sua combinazione annunciata con Dowlais Group plc. Il finanziamento include un prestito a termine B di 843 milioni di dollari, un prestito ponte senior garantito di 1° grado di 843 milioni di dollari e un prestito ponte senior garantito di 2° grado di 500 milioni di dollari.
L'azienda ha anche modificato il suo Accordo di Credito, estendendo la scadenza della sua Struttura di Credito Revolving (RCF) e del Prestito a Termine A per cinque anni. Gli impegni della RCF aumenteranno di 570 milioni di dollari a circa 1,5 miliardi di dollari al momento della chiusura della combinazione.
AAM ha evidenziato il suo forte outlook aziendale, inclusi oltre 20 miliardi di dollari in ricavi a vita garantiti fino al 2030 e oltre nei programmi chiave di trasmissione. Si prevede che la combinazione genererà 300 milioni di dollari in sinergie di costo a regime e amplierà la diversificazione geografica mantenendo una forte esposizione al Nord America.
American Axle & Manufacturing Holdings (NYSE: AXL) ha conseguido con éxito un financiamiento puente sindicado para apoyar su combinación anunciada con Dowlais Group plc. El financiamiento incluye un préstamo a plazo B de 843 millones de dólares, un préstamo puente senior garantizado de 1ª lien de 843 millones de dólares y un préstamo puente senior garantizado de 2ª lien de 500 millones de dólares.
La compañía también ha modificado su Acuerdo de Crédito, extendiendo el vencimiento de su Instalación de Crédito Revolvente (RCF) y del Préstamo a Plazo A por cinco años. Los compromisos de la RCF aumentarán en 570 millones de dólares a aproximadamente 1.5 mil millones de dólares al cierre de la combinación.
AAM destacó su sólido panorama empresarial, incluyendo más de 20 mil millones de dólares en ingresos de por vida asegurados hasta 2030 y más allá en programas clave de transmisión. Se espera que la combinación genere 300 millones de dólares en sinergias de costos en régimen y ampliará la diversificación geográfica mientras mantiene una fuerte exposición en América del Norte.
아메리칸 액슬 & 제조 홀딩스 (NYSE: AXL)는 다울라이스 그룹 plc와의 합병을 지원하기 위해 성공적으로 브리지 금융을 조달했습니다. 이 금융에는 8억 4천 3백만 달러의 2차 대출, 8억 4천 3백만 달러의 1순위 담보 브리지 시설, 5억 달러의 2순위 담보 브리지 시설이 포함됩니다.
회사는 또한 신용 계약을 수정하여 회전 신용 시설(RCF)과 1차 대출의 만기를 5년 연장했습니다. RCF 약정은 합병이 완료될 때 약 15억 달러로 5억 7천만 달러 증가합니다.
AAM은 2030년 이후까지 보장된 200억 달러 이상의 평생 수익을 포함하여 강력한 사업 전망을 강조했습니다. 이 합병은 3억 달러의 비용 시너지 효과를 창출할 것으로 예상되며, 북미에서의 강력한 노출을 유지하면서 지리적 다양성을 확대할 것입니다.
American Axle & Manufacturing Holdings (NYSE: AXL) a réussi à syndiquer un financement relais pour soutenir sa combinaison annoncée avec Dowlais Group plc. Le financement comprend un prêt à terme B de 843 millions de dollars, une facilité de bridge senior garantie de 1er rang de 843 millions de dollars et une facilité de bridge senior garantie de 2ème rang de 500 millions de dollars.
L'entreprise a également modifié son Accord de Crédit, prolongeant l'échéance de sa Facilité de Crédit Renouvelable (RCF) et de son Prêt à Terme A de cinq ans. Les engagements de la RCF augmenteront de 570 millions de dollars pour atteindre environ 1,5 milliard de dollars lors de la clôture de la combinaison.
AAM a souligné ses fortes perspectives commerciales, y compris plus de 20 milliards de dollars de revenus à vie garantis jusqu'en 2030 et au-delà dans les programmes clés de transmission. La combinaison devrait générer 300 millions de dollars de synergies de coûts récurrentes et élargira la diversification géographique tout en maintenant une forte exposition en Amérique du Nord.
American Axle & Manufacturing Holdings (NYSE: AXL) hat erfolgreich eine syndizierte Brückenfinanzierung zur Unterstützung seiner angekündigten Fusion mit der Dowlais Group plc bereitgestellt. Die Finanzierung umfasst ein Term Loan B über 843 Millionen Dollar, eine 1st Lien Senior Secured Bridge Facility über 843 Millionen Dollar und eine 2nd Lien Senior Secured Bridge Facility über 500 Millionen Dollar.
Das Unternehmen hat auch seine Kreditvereinbarung geändert und die Laufzeit seiner revolvierenden Kreditfazilität (RCF) und des Term Loan A um fünf Jahre verlängert. Die RCF-Verpflichtungen werden bei Abschluss der Fusion um 570 Millionen Dollar auf etwa 1,5 Milliarden Dollar steigen.
AAM hob seinen starken Geschäftsausblick hervor, einschließlich über 20 Milliarden Dollar an Lebenszeitumsätzen, die bis 2030 und darüber hinaus in den Kernprogrammen der Antriebsstrangtechnik gesichert sind. Die Fusion wird voraussichtlich 300 Millionen Dollar an Kostensynergien generieren und die geografische Diversifizierung erweitern, während sie eine starke nordamerikanische Präsenz aufrechterhält.
- Secured $2.186 billion in total bridge financing
- Extended credit facility maturity by 5 years
- Increased revolving credit facility by $570 million to $1.5 billion
- Secured $20+ billion in lifetime revenues through 2030
- Expected $300 million in run-rate cost synergies
- Significant increase in debt leverage
- Higher interest expenses from new debt facilities
Insights
The successful syndication of
The amended credit agreement's extension of maturity dates is particularly strategic in the current high-interest-rate environment, providing AAM with enhanced financial flexibility and reduced refinancing risk. The
The secured lifetime revenues of
The financing package's structure suggests careful consideration of the company's debt capacity, with the multi-tiered approach allowing for optimal capital allocation. The successful syndication indicates that lenders are comfortable with AAM's post-merger credit profile, despite the significant increase in leverage. This financial foundation positions AAM well for executing its growth strategy in both traditional ICE/Hybrid markets and emerging automotive technologies.
The bridge financing has been successfully syndicated to a broad group of financial institutions in the form of a
"We are pleased with the strong support of our banking partners in the financing of this important and transformational business combination for AAM," said Christopher J. May, AAM's Executive Vice President and Chief Financial Officer. "The Amended Credit Agreement extends AAM's maturity profile and enhances our liquidity while further strengthening our capital structure."
Investor Presentation
AAM posted an investor presentation at www.aam.com/investors/offer-for-Dowlais-Group-plc that provides additional information on the attractive business outlook for AAM, as well as the significant benefits and value creation potential of the Combination. The presentation highlights:
- AAM's high revenue visibility in core driveline programs with over
$20 billion - AAM's favorable positioning for resurging ICE / Hybrid volumes and quote activity in
North America . - The expanded geographic diversification which enables the company resulting from the Combination to better serve customers while still maintaining the highest North American exposure among US-listed auto parts companies.
- The robust process for identifying the
$300 million - The status of the regulatory approval process.
About AAM
As a leading global Tier 1 Automotive and Mobility Supplier, AAM designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in
Cautionary Statement Concerning Forward-Looking Statements
This press release contains statements concerning AAM's (the "Company's") expectations, beliefs, plans, objectives, goals, strategies, and future events or performance, including, but not limited to, certain statements related to (i) the ability of the Company and Dowlais to consummate the Combination in a timely manner or at all; (ii) the satisfaction (or waiver) of conditions to the consummation of the Combination; (iii) adverse effects on the market price of the Company's or Dowlais's operating results, including because of a failure to complete the Combination; (iv) the effect of the announcement or pendency of the Combination on the Company's or Dowlais's business relationships, operating results and business generally; (v) future capital expenditures, expenses, revenues, economic performance, synergies, financial conditions, market growth, dividend policy, losses and future prospects; (vi) business and management strategies and the expansion and growth of the operations of the Company or the Dowlais; and (vii) the effects of government regulation on the business of the Company or Dowlais. 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 the Company's future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "expect," "anticipate," "intend," "project," "target," and similar words or 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 the Company's 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 inflation, recession or recessionary concerns, or slower growth in the markets in which the Company operates; reduced purchases of the Company's products by General Motors Company (GM), Stellantis N.V. (Stellantis), Ford Motor Company (Ford) or other customers; the Company's ability to respond to changes in technology, increased competition or pricing pressures; the Company's ability to develop and produce new products that reflect market demand; lower-than-anticipated market acceptance of new or existing products; the Company's ability to attract new customers and programs for new products; reduced demand for the Company's customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM, Stellantis and Ford); risks inherent in the Company's global operations (including tariffs and the potential consequences thereof to the Company, the Company's suppliers, and the Company's customers and their suppliers, adverse changes in trade agreements, such as
Additional Information
This press release may be deemed to be solicitation material in respect of the Combination, including the issuance of shares of the Company's common stock in respect of the Combination (the "Share Issuance"). In connection with the foregoing proposed Share Issuance, the Company expects to file a proxy statement on Schedule 14A, including any amendments and supplements thereto (the "Proxy Statement") with the SEC. To the extent the Combination is effected as a scheme of arrangement under English law, the Share Issuance would not be expected to require registration under the Securities Act, pursuant to an exemption provided by Section 3(a)(10) under the Securities Act. In the event that the Company exercises its right to elect to implement the Combination by way of a takeover offer (as defined in the
Participants in the Solicitation
The Company and its directors, its directors, executive officers and certain other members of management and employees will be participants in the solicitation of proxies from the Company's stockholders in respect of the Combination, including the proposed issuance of Company's common stock in connection with the Combination. Information regarding the Company's directors and executive officers is contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 of the Company, which was filed with the SEC on February 14, 2025 and in the definitive proxy statement on Schedule 14A for the Company's annual meeting of stockholders of the Company, which was filed with the SEC on March 21, 2024 and the Current Report on Form 8-K of the Company, which was filed with the SEC on May 2, 2024. Additional information regarding the identity of participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the Proxy Statement when it is filed with the SEC. To the extent holdings of the Company's securities by its directors or executive officers change from the amounts set forth in the Proxy Statement, such changes will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC by the Company. These documents may be obtained free of charge from the SEC's website at www.sec.gov and the Company's website at https://www.aam.com/investors.
Contacts
Investor Contact:
David H. Lim
Head of Investor Relations
+1 313 758 2006
david.lim@aam.com
Media Contact:
Christopher M. Son
Vice President, Marketing & Communications
+1 313 758 4814
chris.son@aam.com
FGS Global (PR adviser to AAM):
Jared Levy/Jim Barron
+1 212 687 8080
Charlie
+44 20 7251 3801
AAM@fgsglobal.com
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SOURCE American Axle & Manufacturing Holdings, Inc.
FAQ
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