fwp
Filed Pursuant to Rule 433
Registration No. 333-132129-01
Registration No. 333-132129
February 22, 2007
American Axle & Manufacturing, Inc.
Pricing Term Sheet
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Issuer:
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American Axle & Manufacturing, Inc. |
Guaranteed by:
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American Axle & Manufacturing Holdings, Inc. |
Size:
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$300,000,000 |
Maturity:
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March 1, 2017 |
Coupon:
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7.875% |
Price:
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100% of face amount |
Yield to maturity:
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7.875% |
Interest Payment Dates:
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March 1 and September 1, commencing September 1, 2007 |
Redemption Provisions: |
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First call date
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March 1, 2012 |
Make-whole call
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Before the first call date at a discount
rate of Treasury plus 50 basis points |
Redemption prices:
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Commencing March 1, 2012: 103.938% |
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Commencing March 1, 2013: 102.625% |
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Commencing March 1, 2014: 101.313% |
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Commencing March 1, 2015 and thereafter 100% |
Underwriting Discount:
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1.5% |
Settlement:
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T+3; February 27, 2007 |
CUSIP:
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02406PAF7 |
ISIN: |
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US02406PAF71 |
Other terms: |
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Certain U.S. Federal Tax
Tax Considerations to Non-
U.S. Holders
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Prospective investors should consult their
professional advisors on the possible tax
consequences of buying, holding or selling
any notes under the laws of their country
of citizenship, residence or domicile. |
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The following discussion summarizes certain
U.S. federal income tax considerations that
may be relevant to the acquisition,
ownership and disposition of the notes by a
non-U.S. person who purchases the notes in
the initial offering. This discussion is
based upon the provisions of the Internal
Revenue Code of 1986, as amended (the
Code), applicable Treasury Regulations
promulgated thereunder, judicial authority
and administrative interpretations, as of
the date hereof, all of which are subject
to change, possibly with retroactive effect
or are subject to different
interpretations. |
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In this discussion, we do not purport to address all tax considerations that may be |
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important to you in light of your
particular circumstances, or to certain
categories of investors that may be subject
to special rules, such as financial
institutions, insurance companies,
regulated investment companies, tax-exempt
organizations, dealers in securities or
currencies, persons whose functional
currency is not the U.S. dollar,
partnerships or other pass-through entities
for U.S. federal income tax purposes, U.S.
expatriates or investors who hold the notes
as part of a hedge, conversion transaction,
straddle or other risk reduction
transaction. This discussion is limited to
initial investors who purchase the notes
for cash at the original offering price and
who holds the notes as capital assets
(generally for investment purposes). If a
partnership holds notes, the tax treatment
of a partner generally will depend upon the
status of the partner and the activities of
the partnership. This summary does not
consider any tax consequences arising under
the laws of any foreign, state, local or
other jurisdiction.
To ensure compliance with requirements
imposed by the Internal Revenue Service, we
inform you that any tax statement herein
regarding any U.S. federal tax consequences
is not intended or written to be used, and
cannot be used, by any taxpayer for the
purpose of avoiding any penalties under
U.S. tax laws. Any such statement herein
was written in connection with the
marketing or promotion of the transaction
to which the statement relates. Investors
considering the purchase of notes should
consult their own independent tax advisors
regarding the application of the U.S.
federal tax laws to their particular
situations and the applicability and effect
of state, local or foreign tax laws and tax
treaties.
You are a Non-U.S. Holder for purposes of
this discussion if you are a beneficial
owner of a note and you are for U.S.
federal income tax purposes:
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an individual who is not a citizen or resident of the United States; |
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a corporation or other entity
treated as a corporation for U.S. federal
income tax purposes organized or created
under laws outside of the United States; or |
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an estate or trust that is not
subject to United States federal income
taxation on its worldwide income. |
Interest on the Notes
Payments of interest on the notes to a
Non-U.S. Holder generally will be exempt
from U.S. federal income tax and
withholding tax under the portfolio
interest exemption if you properly certify
as to your foreign status (as described
below) and:
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you do not own, actually or
constructively, 10% or more of the combined
voting power of all classes of our stock
entitled to vote; |
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you are not a controlled foreign
corporation that is related to us through
stock ownership; and |
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you are not a bank that receives
such interest in a transaction described in
section 881(c)(3)(A) of the Code. |
The portfolio interest exemption and
several of the special rules for Non-U.S.
Holders described below generally apply
only if you appropriately certify as to
your foreign status. You can generally
meet this certification requirement by
providing a properly executed IRS Form
W-8BEN or appropriate substitute form to us
or our paying agent certifying under
penalty of perjury that you are not a U.S.
person. If you hold the notes through a
securities clearing organization, financial
institution or other agent acting on your
behalf, you may be required to provide
appropriate certifications to the agent.
Your agent will then generally be required
to provide appropriate certifications to us
or our paying agent, either directly or
through other intermediaries.
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Special
rules apply to foreign partnerships,
estates and trusts and other
intermediaries, and in certain
circumstances certifications as to foreign
status of partners, trust owners or
beneficiaries may have to be provided. In
addition, special rules apply to qualified
intermediaries that enter into withholding
agreements with the IRS.
If you cannot satisfy the requirements
described above for the portfolio interest
exemption, payments of interest made to you
on the notes will be subject to the 30%
U.S. federal withholding tax, unless you
provide us either with (1) a properly
executed IRS Form W-8BEN (or successor
form) claiming an exemption from (or a
reduction of) withholding under the benefit
of a tax treaty or (2) a properly executed
IRS Form W-8ECI (or successor form) stating
that interest paid on the note is not
subject to withholding tax because the
interest is effectively connected with your
conduct of a trade or business in the
United States and you meet the
certification requirements described below.
See Income or Gain Effectively
Connected with a U.S. Trade or Business.
Disposition of Notes
You generally will not be subject to U.S.
federal income tax (and generally no tax
will be withheld) on any gain realized on
the sale, redemption, exchange, retirement
or other taxable disposition of a note
unless:
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the gain is effectively connected
with the conduct by you of a U.S. trade or
business (and in the case of an applicable
tax treaty, attributable to your permanent
establishment in the United States); or |
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you are an individual who has been
present in the United States for 183 days
or more in the taxable year of disposition
and certain other requirements are met. |
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Income or Gain Effectively Connected with a
U.S. Trade or Business
If any interest on the notes or gain from
the sale, exchange or other taxable
disposition of the notes is effectively
connected with a U.S. trade of business
conducted by you (and in the case of an
applicable treaty, attributable to your
permanent establishment in the United
States), then the income or gain will be
subject to U.S. federal income tax at
regular graduated income tax rates, but
will not be subject to U.S. withholding tax
if certain certification requirements are
satisfied. You can generally meet these
certification requirements by providing a
properly executed IRS Form W-8ECI or
appropriate substitute form to us, or our
paying agent. If you are a corporation,
the portion of your earnings and profits
that is effectively connected with your
U.S. trade of business (and, in the case of
an applicable tax treaty, attributable to
your permanent establishment in the United
States) also may be subject to an
additional branch profits tax at a 30%
rate, although an applicable tax treaty may
provide for a lower rate.
Information Reporting and Backup Withholding
Payments to Non-U.S. Holders of interest on
a note, and amounts withheld from such
payments, if any, generally will be
required to be reported to the IRS and to
you. Backup withholding tax generally will
not apply to payments of interest and
principal on a note to a Non-U.S. Holder if
certification of foreign status such as an
IRS Form W-8BEN described in Interest on
the Notes is duly provided by the Non-U.S.
Holder or such holder otherwise establishes
an exemption, provided that we do not have
actual knowledge or reason to know that the
holder is a U.S. person.
Payment of the proceeds of a sale of a note
effected by the U.S. office of a U.S. or
foreign broker will be subject to
information reporting requirements and
backup withholding unless you properly
certify under penalties of perjury as to
your foreign status and certain other
conditions are met or you otherwise
establish an exemption.
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Information
reporting requirements and backup
withholding generally will not apply to any
payment of the proceeds of the sale of a
note effected outside the United States by
a foreign office of a broker. However,
unless such a broker has documentary
evidence in its records that you are a
Non-U.S. Holder and certain other
conditions are met, or you otherwise
establish an exemption, information
reporting will apply to a payment of the
proceeds of the sale of a note effected
outside the United States by certain
brokers with substantial connections to the
United States. |
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Backup withholding is not an additional
tax. Any amount withheld under the backup
withholding rules may be credited against
your U.S. federal income tax liability and
any excess may be refundable if the proper
information is provided to the IRS on a
timely basis. |
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European Union Selling
Restrictions
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In addition, the underwriters have
represented the following: |
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In relation to each Member State of the
European Economic Area which has
implemented the Prospectus Directive (each,
a Relevant Member State), each
underwriter has represented and agreed that
with effect from and including the date on
which the Prospectus Directive is
implemented in that Relevant Member State
(the Relevant Implementation Date) it has
not made and will not make an offer of
notes to the public in that Relevant Member
State except that it may, with effect from
and including the Relevant Implementation
Date, make an offer of notes to the public
in that Relevant Member State at any time
under the following exemptions under the
Prospectus Directive, if they have been
implemented in that Relevant Member State: |
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to legal entities which are
authorized or regulated to operate in the
financial markets or, if not so authorized
or regulated, whose corporate purpose is
solely to invest in securities; |
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to any legal entity which has two or more of (1) an average of at least 250 |
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employees during the last financial year;
(2) a total balance sheet of more than
43,000,000 and (3) an annual net turnover
of more than 50,000,000, as shown in its
last annual or consolidated accounts; or |
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in any other circumstances which do
not require the publication by us of a
prospectus pursuant to Article 3 of the
Prospectus Directive. |
For the purposes of this provision, the
expression an offer of notes to the
public in relation to any notes in any
Relevant Member State means the
communication in any form and by any means
of sufficient information on the terms of
the offer and the notes to be offered so as
to enable an investor to decide to purchase
or subscribe the notes, as the same may be
varied in that Member State by any measure
implementing the Prospectus Directive in
that Member State and the expression
Prospectus Directive means Directive
2003/71/EC and includes any relevant
implementing measure in each Relevant
Member State.
Each underwriter has represented, warranted
and agreed that:
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it has only communicated or caused
to be communicated and will only
communicate or cause to be communicated an
invitation or inducement to engage in
investment activity (within the meaning of
Section 21A of the Financial Services and
Markets Act 2000 (the FSMA) received by
it in connection with the issue or sale of
the notes in circumstances in which Section
21(1) of the FSMA does not apply to us; and |
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it has complied and will comply
with all applicable provisions of the FSMA
with respect to anything done by it in
relation to the notes included in this
offering in, from or otherwise involving
the United Kingdom. |
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The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates and a preliminary prospectus supplement relating to this offering. Before you invest, you should read the prospectus in
that registration statement, the preliminary prospectus supplement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
collect 1-212-270-3994.
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