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American Axle Secures Financing for Dowlais Acquisition

Story Highlights
  • AAM increased its credit facility to $1.495 billion to support its acquisition of Dowlais Group.
  • The acquisition is expected to enhance AAM’s market position and geographic reach with cost synergies.
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American Axle Secures Financing for Dowlais Acquisition

American Axle ( (AXL) ) has issued an announcement.

On February 24, 2025, American Axle & Manufacturing Holdings, Inc. announced a significant amendment to its credit agreement, increasing its revolving credit facility to $1.495 billion and securing an $843 million incremental term loan B facility. This financial restructuring supports AAM’s acquisition of Dowlais Group plc, enhancing the company’s liquidity and capital structure. The successful syndication of bridge financing, including a $843 million Term Loan B and $500 million 2nd Lien Senior Secured Bridge Facility, underscores strong banking support for this transformative business combination. The acquisition is expected to expand AAM’s geographic reach and improve its market position, with anticipated cost synergies and increased revenue visibility.

More about American Axle

American Axle & Manufacturing Holdings, Inc. (AAM) is a leading global Tier 1 automotive and mobility supplier. The company designs, engineers, and manufactures driveline and metal forming technologies to support electric, hybrid, and internal combustion vehicles. Headquartered in Detroit, AAM operates over 75 facilities across 16 countries, focusing on creating a safer and more sustainable future.

YTD Price Performance: -2.78%

Average Trading Volume: 1,998,702

Technical Sentiment Consensus Rating: Buy

Current Market Cap: $658.5M

See more insights into AXL stock on TipRanks’ Stock Analysis page.

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