American Axle Credit Agreement

American Axle & Manufacturing, a leading global supplier of driveline and drivetrain systems and components, recently announced that it has entered into a new credit agreement, which will enhance its financial flexibility and provide it with additional liquidity.

The new credit agreement, which has been signed with a group of lenders led by JPMorgan Chase Bank, N.A., provides American Axle with a revolving credit facility of up to $500 million, which can be used for general corporate purposes, including working capital, capital expenditures, and acquisitions.

In addition to the revolving credit facility, the credit agreement also includes an option for an additional $250 million of borrowing capacity, subject to certain conditions.

According to Bill Smith, American Axle`s Chief Financial Officer, “We are pleased to announce this new credit agreement, which reflects the strength of our financial position and the confidence that our lenders have in our business. This new facility provides us with greater flexibility and liquidity, which will help us to continue to invest in our business and pursue attractive growth opportunities.”

The credit agreement is also structured to include several key provisions that ensure American Axle maintains compliance with certain financial covenants, including leverage and interest coverage ratios. These covenants are important as they help to safeguard the financial health of the company and ensure that it remains financially stable.

Overall, the new credit agreement provides American Axle with much-needed financial flexibility and additional liquidity, which will enable the company to pursue its growth strategy and continue to deliver value to its customers and shareholders.