Hayes Lemmerz Amends and Restates Credit Agreement; Completes New $150 Million Term Loan
12 April 2005 - 6:29AM
PR Newswire (US)
Hayes Lemmerz Amends and Restates Credit Agreement; Completes New
$150 Million Term Loan NORTHVILLE, Mich., April 11
/PRNewswire-FirstCall/ -- Hayes Lemmerz International, Inc.
(NASDAQ:HAYZ) announced today that it has amended and restated the
Credit Agreement, originally dated June 3, 2003, governing its
existing Senior Secured Term Loan and Senior Secured Revolving
Loan. The Amended and Restated Credit Agreement will provide the
Company with additional flexibility under certain financial
covenants and increase the Company's ability to fund growth
opportunities. Among other things, the Amended and Restated Credit
Agreement: * establishes a new second lien $150 million term loan,
from which approximately 50% of the net proceeds were used to repay
a portion of the existing Senior Secured Term Loan, with the
remainder to be used for general corporate purposes; * reduces the
Company's interest rate on the existing term loan by 50 basis
points; * favorably modifies the financial covenants; and * allows
the Company to retain 50% of the net proceeds from the proposed
divestiture of its Commercial Highway Hub and Drum business for
capital expenditures. James Yost, Vice President of Finance and
Chief Financial Officer, said, "We are extremely pleased with the
continued show of support from our existing lenders and the
commitment of our new investors. The new financing arrangements
significantly enhance the Company's liquidity, provide greater
flexibility and enable us to continue our strategic investments in
geographic and product areas that have greater investment return
and cash flow generation potential." 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 factors set forth in
our periodic reports 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. 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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