American Axle prices $425 million in senior notes

AP News
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Posted: Dec 10, 2009 2:31 PM

American Axle & Manufacturing Inc. said Thursday it has priced a previously announced debt offering of $425 million worth of notes due 2017.

American Axle, which makes parts for cars, trucks and sport utility vehicles, intends to use the proceeds to repay outstanding debt under a June 2007 term loan agreement.

The 9.25 percent senior secured notes are priced at 98.715 percent. The notes issue is expected to close on Dec. 18.

Shares fell 11 cents to $7.30 in afternoon trading.