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Long-Term Debt | 9 Months Ended
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Sep. 30, 2013
Long-term Debt, Unclassified [Abstract] |
Long-term Debt [Text Block] | 4. LONG-TERM DEBT Long-term debt consists of the following:
|  | September 30, 2013 |  | December 31, 2012
|  | (in millions)
Amended revolving facility |  | $ | — |  |  | $ | — |
Term facility |  | — |  |  | — |
9.25% Notes, net of discount |  | 337.9 |  |  | 337.5 |
7.875% Notes |  | — |  |  | 300.0 |
7.75% Notes |  | 200.0 |  |  | 200.0 |
6.625% Notes |  | 550.0 |  |  | 550.0 |
6.25% Notes |  | 400.0 |  |  | — |
Foreign credit facilities |  | 79.3 |  |  | 61.0 |
Capital lease obligations |  | 5.4 |  |  | 5.6 |
Long-term debt |  | $ | 1,572.6 |  |  | $ | 1,454.1 |
6.25% Notes In the first quarter of 2013, we issued $400.0 million of 6.25% senior unsecured notes due 2021 (6.25% Notes). Concurrent with the offering of the 6.25% Notes, we made a tender offer to purchase our 7.875% Notes, of which the aggregate principal amount outstanding at the time of the tender offer was $300.0 million. Net proceeds from the 6.25% Notes were used to fund the purchase pursuant to the tender offer and the subsequent redemption of the entire $300.0 million of the 7.875% Notes and for other general corporate purposes. We paid debt issuance costs of $6.6 million in the first nine months of 2013 related to the 6.25% Notes. 7.875% Notes On March 1, 2013, in connection with the cash tender offer, we purchased $172.6 million aggregate principal amount of the 7.875% Notes, and paid accrued interest. Upon purchase, we expensed $5.2 million related to a tender premium, $0.1 million of professional fees and unamortized debt issuance costs of $1.2 million related to this debt. We had been amortizing the debt issuance costs over the expected life of the borrowing. On March 15, 2013, we voluntarily redeemed the remaining 7.875% Notes outstanding. This resulted in a principal payment of $127.4 million, a payment of $3.3 million related to a redemption premium, as well as payment of accrued interest. Upon redemption, we expensed $0.9 million of unamortized debt issuance costs related to this debt. We had been amortizing the debt issuance costs over the expected life of the borrowing. Amended Revolving Facility and Term Facility On September 13, 2013, we amended and restated the Credit Agreement dated as of January 9, 2004 (as amended and restated, the Amended and Restated Credit Agreement and the facility thereunder, the Amended Revolving Facility). As of September 30, 2013, the Amended Revolving Facility provided up to $523.5 million of revolving bank financing commitments through September 13, 2018. We had $23.3 million of standby letters of credit issued against the facility as of September 30, 2013. The Amended and Restated Credit Agreement, among other things, increased the aggregate commitments by approximately $158.5 million and extended the maturity date from June 30, 2016 to September 13, 2018. In addition, the Amended and Restated Credit Agreement provides for a senior secured term loan A facility in an aggregate principal amount of $150.0 million (Term Facility). The full amount of the Term Facility must be drawn within thirty days after September 13, 2013. No amount had been drawn on the Term Facility as of September 30, 2013. We paid debt issuance costs of $6.3 million in the third quarter of 2013 associated with the amendments and restatements of our Amended Revolving Facility and Term Facility. In October 2013, we borrowed $150.0 million under the Term Facility. Net proceeds from the Term Facility were used to to fund the voluntary redemption of $150.0 million of our 9.25% Notes. Borrowings under the Amended Revolving Facility and the Term Facility bear interest at rates based on adjusted LIBOR or an alternate base rate, plus an applicable margin. The applicable margin for LIBOR-based loans will be between 1.5% and 3.0%. Under the Amended Revolving Facility, certain negative covenants were revised to provide increased flexibility. In the event AAM achieves investment grade corporate credit ratings from S&P and Moody's, AAM may elect to release all of the collateral from the liens granted pursuant to the Collateral Agreement, subject to notice requirements and other conditions. The Amended Revolving Facility and Term Facility are secured on a first priority basis by all or substantially all of the assets of AAM and each guarantor under the Collateral Agreement dated as of November 7, 2008, as amended and restated as of September 13, 2013. On March 20, 2013, we terminated our class C loan facility of $72.8 million, which would have matured on June 30, 2013. Upon termination, we expensed $0.5 million of unamortized debt issuance costs related to the class C facility. We had been amortizing the debt issuance costs over the expected life of the borrowing. The Amended Revolving Facility provides back-up liquidity for our foreign credit facilities. We intend to use the availability of long-term financing under the Amended Revolving Facility to refinance any current maturities related to such credit facilities that are not otherwise refinanced on a long-term basis in their local markets. We utilize local currency credit facilities to finance the operations of certain foreign subsidiaries. At September 30, 2013, $79.3 million was outstanding under these facilities and total capacity under these facilities was $111.4 million. At September 30, 2013, certain of our secured and local currency credit facilities were limited by the secured indebtedness covenant contained in our 9.25% Notes. This covenant restricts total secured borrowings to 2.5 times the most recently reported trailing twelve months earnings before interest, taxes, depreciation and amortization (TTM EBITDA), as defined in the Indenture relating to the 9.25% Notes. We could borrow a total of $377.0 million on certain of our secured and local currency credit facilities at September 30, 2013. In the fourth quarter of 2013, we expect this restriction will be significantly reduced based upon our September 30, 2013 TTM EBITDA and the redemption of a portion of our outstanding 9.25% Notes as described below. Further, the covenant will be eliminated upon the redemption or purchase of the remaining amount outstanding under our 9.25% Notes. 9.25% Notes In October 2013, we voluntarily redeemed $150.0 million of our outstanding 9.25% Notes. This resulted in a principal payment of $150.0 million, a redemption premium of $8.6 million and $3.5 million of accrued interest, pursuant to the terms of the 9.25% Notes. Upon redemption, we will expense $3.0 million of unamortized debt discount and debt issuance costs related to the 9.25% Notes. We had been amortizing the debt discount and debt issuance costs over the expected life of the borrowing. The weighted-average interest rate of our long-term debt outstanding was 7.5% at September 30, 2013 and 7.9% as of December 31, 2012. The amount of accrued interest included in accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets was $31.0 million and $35.1 million as of September 30, 2013 and December 31, 2012, respectively.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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