Hayes Lemmerz Obtains Agreement to Amend Loan Terms
12 March 2005 - 9:42AM
PR Newswire (US)
Hayes Lemmerz Obtains Agreement to Amend Loan Terms NORTHVILLE,
Mich., March 11 /PRNewswire-FirstCall/ -- Hayes Lemmerz
International, Inc. (NASDAQ:HAYZ) announced today that it has
obtained an agreement from its lenders to amend the Credit
Agreement dated as of June 3, 2003 governing its $450 million
Senior Secured Term Loan and $100 million Senior Secured Revolving
Loan. The amendments will reduce debt costs related to these
facilities, provide the Company with additional flexibility under
the financial covenants and increase the Company's ability to fund
growth opportunities. The amendments to the Credit Agreement will,
among other things: * allow Hayes Lemmerz to proceed with its
previously announced plan to offer approximately $150 million in
Euro denominated senior unsecured notes and retain half of the net
proceeds from the offering for general corporate purposes; * reduce
the Company's interest rate on its Term Loan by 50 basis points; *
favorably modify the financial covenants; * permit the Company to
increase its Revolving Loan from $100 million up to $125 million;
and * allow Hayes Lemmerz to retain half of the net proceeds from
the proposed divestiture of its Commercial Highway Hubs and Drums
business for capital expenditures. The effectiveness of these
amendments is subject to a number of conditions, including the
successful completion of the offering of the previously announced
senior unsecured notes with net proceeds to the Company of at least
Euro 100 million. James Yost, Vice President of Finance and Chief
Financial Officer, said, "We are very pleased with the continued
show of support from our lenders. This amendment to our Credit
Agreement will provide the Company with additional financial
flexibility to support our continuing strategy to expand in
geographic and product areas where we can increase the Company's
profitability and enhance shareholder value." Hayes Lemmerz
International, Inc. is a world leading global supplier of
automotive and commercial highway wheels, brakes, powertrain,
suspension, structural and other lightweight components. The
Company has 43 facilities and approximately 11,000 employees
worldwide. This press release includes forward looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended,
which represent the Company's expectations and beliefs concerning
future events that involve risks and uncertainties which could
cause actual results to differ materially from those currently
anticipated. All statements other than statements of historical
facts included in this release are forward looking statements.
Factors that could cause actual results to differ materially from
those expressed or implied in such forward looking statements
include the inability to successfully complete the offering of the
new senior unsecured notes or satisfy the other conditions to the
effectiveness of the amendment to the Credit Agreement, the
inability to successfully complete the proposed divestiture of the
Commercial Highway Hubs and Drums business, and the factors set
forth in our periodic reports and other documents filed with the
SEC. Consequently, all of the forward looking statements made in
this press release are qualified by these and other factors, risks
and uncertainties. The notes referred to in this press release will
not be registered under the Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements. This
press release shall not constitute an offer to sell or a
solicitation of an offer to purchase any of the notes nor shall
there be any sale of the notes in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction. DATASOURCE: Hayes Lemmerz International, Inc.
CONTACT: Marika P. Diamond of Hayes Lemmerz International, Inc.,
+1-734-737-5162 Web site: http://www.hayes-lemmerz.com/
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