American Axle & Manufacturing Expands Credit Facility as It Advances Business Combination

American Axle & Manufacturing Holdings, Inc. announced on February 24, 2025, that it has entered into a Second Amendment and Incremental Facility Agreement with its wholly owned subsidiary, American Axle & Manufacturing, Inc., various financial institutions and JPMorgan Chase Bank, N.A., serving as administrative agent. The agreement amends the Amended and Restated Credit Agreement originally dated March 11, 2022, and introduces several key changes designed to support the Company’s ongoing Business Combination, which involves a proposed acquisition of Dowlais Group plc.

Under the terms of the Second Amendment, the maximum revolving credit facility amount has been increased to $1,495 million effective upon the closing of the Business Combination. In addition, the agreement provides for an $843 million incremental term loan facility to be made available to American Axle & Manufacturing, Inc. in connection with the Business Combination. Furthermore, the maturity of both the revolving credit facility and the tranche A term loan facility has been extended to the five-year anniversary of the Second Amendment’s effective date, with a subsequent extension tied to the closing of the Business Combination.

Concomitant with the entry into the Second Amendment, the Company also effected a termination of its previously arranged Backstop Credit Agreement with the Backstop Lenders through the delivery of a Backstop Termination Letter Agreement on the same day. The termination follows the increased borrowing capacity provided by the Second Amendment, effectively winding down the prior credit facility established in connection with the anticipated Business Combination.

Additionally, American Axle & Manufacturing, Inc., together with its lenders and JPMorgan Chase Bank, N.A., entered into amended and restated Bridge Credit Agreements. These revised agreements update the existing First Lien Bridge Credit Agreement and Second Lien Bridge Credit Agreement to reflect the conforming changes in connection with the Second Amendment. The revised documents facilitate the provision of interim loan facilities of $843 million and $500 million, respectively, as part of the financing efforts to support the Business Combination.

The filing also notes that on February 24, 2025, the Company issued a press release and provided supplementary information regarding its proposal to acquire the entire issued and to be issued share capital of Dowlais Group plc. The press release and an accompanying investor presentation were furnished as exhibits to the filing, offering further insights into the strategic and financial rationale underpinning the Business Combination.

The agreements represent an integral component of American Axle & Manufacturing’s broader financing strategy as it seeks to enhance its liquidity profile and support its strategic initiatives. Any forward-looking statements contained in the filing are subject to uncertainties and risks detailed in the Company’s public disclosures, with actual future results potentially differing materially from those projected.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read American Axle & Manufacturing’s 8K filing here.

American Axle & Manufacturing Company Profile

American Axle & Manufacturing Holdings, Inc engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles.