DETROIT, June 8 /PRNewswire-FirstCall/ -- American Axle & Manufacturing
Holdings, Inc., which is traded as AXL on the NYSE, and its wholly-owned
subsidiary, American Axle & Manufacturing, Inc. (AAM) announced today that
AAM has received financing commitments for a $200 million senior unsecured
term loan from JP Morgan Securities Inc. and Banc of America Securities.
Proceeds from this financing will be used for general corporate
purposes and to refinance payments related to the conversion of American
Axle & Manufacturing Holdings, Inc. Senior Convertible Notes due 2024. The
term loan will mature no earlier than 2010 and is expected to be based on
market terms. The financing commitments are subject to customary terms and
conditions.
AAM also announced today that it has revised its 2006 earnings guidance
to reflect the anticipated impact of this new financing. AAM now expects
its earnings for the full year 2006 to be in the range of $1.00 - $1.10 per
share. This revised guidance reflects an expected increase in interest
costs and a one-time charge to write off unamortized debt issuance costs
related to the Convertible Notes.
AAM's cash flow guidance for the full year 2006 is unchanged. AAM
defines free cash flow to be net cash provided by operating activities less
capital expenditures and dividends paid. Reflecting the impact of its
earnings estimate, capital spending plans and other working capital
initiatives, AAM expects to generate approximately $40 million of free cash
flow in 2006.
AAM is a world leader in the manufacture, engineering, design and
validation of driveline systems and related components and modules, chassis
systems and metal-formed products for light trucks, sport utility vehicles
and passenger cars. In addition to its locations in the United States (in
Michigan, New York and Ohio), AAM also has offices or facilities in Brazil,
China, England, Germany, India, Japan, Mexico, Poland, Scotland and South
Korea.
Certain statements contained in this press release are "forward-looking
statements" and relate to the Company's plans, projections or future
performance. Such statements, including statements relating to the
anticipated financing, earnings guidance and cash flow guidance are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and are based on our current expectations, are
inherently uncertain, are subject to risks and should be viewed with
caution. Actual results and experience may differ materially from the
forward-looking statements as a result of many factors, including but not
limited to: adverse changes in the economic conditions or political
stability of our principal markets (particularly North America, Europe and
South America); reduced demand of our customers' products, particularly
light trucks and SUVs produced by GM and DaimlerChrysler's heavy-duty Dodge
Ram full-size pickup trucks, or the Dodge Ram program; work stoppages at GM
or DaimlerChrysler or a key supplier to GM or DaimlerChrysler; reduced
purchases of our products by GM, DaimlerChrysler or other customers; our
ability and our customers' ability to successfully launch new product
programs; our ability to respond to changes in technology or increased
competition; supply shortages or price fluctuations in raw materials,
utilities or other operating supplies; our ability to maintain satisfactory
labor relations and avoid work stoppages; risks of noncompliance with
environmental regulations or risks of environmental issues that could
result in unforeseen costs at our facilities; liabilities arising from
legal proceedings to which we are or may become a party or claims against
us or our products; availability of financing for working capital, capital
expenditures, research and development or other general corporate purposes;
adverse changes in laws, government regulations or market conditions
affecting our products or our customers' products (including the Corporate
Average Fuel Economy regulations); our ability to attract and retain key
associates; and other unanticipated events and conditions that may hinder
our ability to compete. It is not possible to foresee or identify all such
factors and we make no commitment to update any forward-looking statement
or to disclose any facts, events or circumstances after the date hereof
that may affect the accuracy of any forward-looking statements.
For more information ...
Carrie L.P. Gray Christopher M. Son
Director, Corporate Relations Director, Investor Relations
(313) 758-4880 (313) 758-4814
grayc@aam.com chris.son@aam.com
Or visit the AAM website at http://www.aam.com
SOURCE American Axle & Manufacturing Holdings, Inc.
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Related links:
http://www.aam.com
http://www.prnewswire.com/comp/033813.html/
CONTACT:
Carrie L.P. Gray, Director, Corporate
Relations, +1-313-758-4880, grayc@aam.com , or Christopher M.
Son, Director, Investor Relations, +1-313-758-4814,
chris.son@aam.com , both of American Axle & Manufacturing
Holdings, Inc.
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