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Long-Term Debt | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
Long-term Debt [Text Block] | 4. LONG-TERM DEBT Long-term debt, net consists of the following:
| December 31,
| 2023 |  | 2022
| (in millions)
Revolving credit facility | $ | — |  |  | $ | 25.0 |
Term Loan A Facility | 484.3 |  |  | 520.0 |
Term Loan B Facility | 648.0 |  |  | 675.0 |
6.875% Notes due 2028 | 400.0 |  |  | 400.0 |
6.50% Notes due 2027 | 500.0 |  |  | 500.0 |
6.25% Notes due 2026 | 127.6 |  |  | 180.0 |
5.00% Notes due 2029 | 600.0 |  |  | 600.0 |
Foreign credit facilities | 51.8 |  |  | 72.7 |
Total debt | 2,811.7 |  |  | 2,972.7 |
Less: Current portion of long-term debt | 17.0 |  |  | 75.9 |
Long-term debt | 2,794.7 |  |  | 2,896.8 |
Less: Debt issuance costs | 42.8 |  |  | 51.7 |
Long-term debt, net | $ | 2,751.9 |  |  | $ | 2,845.1 |
SENIOR SECURED CREDIT FACILITIES Holdings and American Axle & Manufacturing, Inc. (AAM, Inc.) are parties to an amended and restated credit agreement including a term loan A facility (the Term Loan A Facility), term loan B facility (the Term Loan B Facility) and a multi-currency revolving credit facility (the Revolving Credit Facility), which was entered into on March 11, 2022 and was amended on December 13, 2022 and June 28, 2023 (the Amended and Restated Credit Agreement). In connection with the Amended and Restated Credit Agreement, Holdings, AAM, Inc. and certain of their restricted subsidiaries are parties to a collateral agreement and guarantee agreement with the financial institutions party thereto. The Amended and Restated Credit Agreement includes customary covenants, including a total net leverage ratio covenant, a cash interest expense coverage ratio covenant, and certain covenants restricting the ability of Holdings, AAM, Inc. and certain subsidiaries of Holdings to create, incur, assume or permit to exist certain additional indebtedness and liens, to make investments and to make or agree to pay or make certain restricted payments, voluntary payments and distributions. On June 28, 2023, Holdings and AAM, Inc. entered into the First Amendment to the Amended and Restated Credit Agreement (the First Amendment), which covers the period from June 28, 2023 through the filing of our second quarter 2024 results, or earlier at AAM's option, subject to certain conditions (the Amendment Period). The First Amendment, among other things, increased the maximum levels of the total net leverage ratio covenant and reduced the minimum levels of the cash interest expense coverage ratio covenant during the Amendment Period, modified certain categories of the applicable margin (determined based on the total net leverage ratio of Holdings) for the duration of the Amendment Period with respect to interest rates under the Term Loan A Facility and the Revolving Credit Facility, and modified certain covenants restricting the ability of Holdings, AAM, Inc. and certain subsidiaries of Holdings to create, incur, assume, or permit to exist certain additional indebtedness and liens and to make or agree to pay or make certain restricted payments, voluntary payments and distributions. The terms of the Term Loan B Facility under the Amended and Restated Credit Agreement, including maturity dates, interest rates and their applicable margins, remain unchanged. We paid debt issuance costs of $3.2 million in the year ended December 31, 2023 related to the First Amendment and in 2022, we expensed $0.6 million of debt refinancing costs, paid accrued interest of $3.4 million, and paid debt issuance costs of $31.4 million related to the Amended and Restated Credit Agreement. In 2023, we made voluntary prepayments totaling $26.0 million on our Term Loan A Facility and $20.2 million on our Term Loan B Facility. As a result, we expensed approximately $1.1 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of these borrowings. In 2022, prior to amending the Amended and Restated Credit Agreement in the fourth quarter, we made voluntary prepayments totaling $100.0 million on our then outstanding term loan B facility. As a result, we expensed approximately $0.6 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of this borrowing. In 2021, we made voluntary prepayments totaling $21.2 million on our Term Loan A Facility and $238.8 million on our Term Loan B Facility. As a result, we expensed approximately $2.5 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of these borrowings. At December 31, 2023, $892.3 million was available under the Revolving Credit Facility. This availability reflects a reduction of $32.7 million for standby letters of credit issued against the facility. The proceeds of the Revolving Credit Facility are used for general corporate purposes. In the first quarter of 2023, we paid $25.0 million on our Revolving Credit Facility that had been drawn in the fourth quarter of 2022. The Revolving Credit Facility, the Term Loan A Facility and the Term Loan B Facility (collectively, the Senior Secured Credit Facilities) provide back-up liquidity for our foreign credit facilities. We intend to use the availability of long-term financing under the Senior Secured Credit Facilities to refinance any current maturities related to such debt agreements that are not otherwise refinanced on a long-term basis in their local markets, except where otherwise reclassified to Current portion of long-term debt on our Consolidated Balance Sheet. REDEMPTION OF 6.25% NOTES DUE 2026 In the fourth quarter of 2023, we voluntarily redeemed a portion of our 6.25% Notes due 2026. This resulted in a principal payment of $50.0 million and $0.9 million in accrued interest. We also expensed approximately $0.2 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of the borrowing. In the fourth quarter of 2023, we also completed an open market repurchase of our 6.25% Notes due 2026 of $2.4 million. In the first quarter of 2022, we also voluntarily redeemed a portion of our 6.25% Notes due 2026. This resulted in a principal payment of $220.0 million and $0.2 million in accrued interest. We also expensed approximately $1.8 million for the write-off of a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of the borrowing, and approximately $3.4 million for the payment of an early redemption premium. 5.00% NOTES DUE 2029 In the third quarter of 2021, we issued $600.0 million in aggregate principal amount of 5.00% Notes due 2029 (the 5.00% Notes). Proceeds from the 5.00% Notes were used to fund a portion of the redemption of the 6.25% Notes due 2025 described below. We paid debt issuance costs of $9.2 million in the twelve months ended December 31, 2021 related to the 5.00% Notes. REDEMPTION OF 6.25% NOTES DUE 2025 In 2021, we voluntarily redeemed our 6.25% Notes due 2025. This resulted in principal payments totaling $700.0 million and $19.4 million in accrued interest. We also expensed approximately $9.6 million for the write-off of the unamortized debt issuance costs that we had been amortizing over the expected life of the borrowing, and approximately $21.9 million for the payment of an early redemption premium. REPAYMENT OF TEKFOR GROUP INDEBTEDNESS Upon the acquisition of Tekfor, we assumed $23.4 million of existing Tekfor indebtedness, of which we repaid $10.7 million in 2022. FOREIGN CREDIT FACILITIES We utilize local currency credit facilities to finance the operations of certain foreign subsidiaries. These credit facilities, some of which are guaranteed by Holdings and/or AAM, Inc., expire at various dates through September 2028. At December 31, 2023, $51.8 million was outstanding under our foreign credit facilities and an additional $84.7 million was available. At December 31, 2022, $72.7 million was outstanding under these facilities and an additional $57.8 million was available. DEBT MATURITIES Aggregate maturities of long-term debt are as follows (in millions):
2024 | $ | 29.1 |
2025 | 46.3 |
2026 | 190.2 |
2027 | 900.0 |
2028 | 411.7 |
Thereafter | 1,234.4 |
Total | $ | 2,811.7 |
INTEREST EXPENSE AND INTEREST INCOME Interest expense was $201.7 million in 2023, $174.5 million in 2022 and $195.2 million in 2021. We capitalized interest of $8.0 million in 2023, $6.6 million in 2022 and $6.2 million in 2021. The weighted-average interest rate of our long-term debt outstanding at December 31, 2023 was 7.1%, as compared to 6.6% and 5.6% at December 31, 2022 and December 31, 2021, respectively. Interest income was $26.2 million in 2023, $17.0 million in 2022 and $10.9 million in 2021. Interest income primarily includes interest earned on cash and cash equivalents, the deferred payment obligation associated with the sale of our former Casting segment, as well as the impact of the interest rate differential on our fixed-to-fixed cross-currency swap.

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