American Axle offers pension buyouts
American Axle & Manufacturing Holdings Inc. plans to offer thousands of former employees pension buyouts starting next month.
In a filing Monday afternoon to the U.S. Securities and Exchange Commission, the Detroit auto supplier said it plans to offer a voluntary one-time lump sum cash payment to about 6,000 of its 14,000 total U.S. pension plan participants. The offer will open Oct. 2 and close Nov. 12.
The one-time lump sum cash payment, which follows similar pension buyouts from Ford Motor Co. and General Motors Co. in recent years, will be made in December. American Axle expects to incur a non-cash charge in the fourth quarter of 2014. The amount of the non-cash charge will be based upon participation rates, the value of plan assets and discount rates as of Dec. 31.
American Axle closed Monday at $17.62 per share, down 13 cents from the opening bell.
An American Axle spokesperson was not immediately available to comment on the planned buyout.