Hayes Lemmerz Announces Completion of Previously Announced Rights Offering and Related Debt Refinancing
31 May 2007 - 2:19PM
PR Newswire (US)
NORTHVILLE, Mich., May 30 /PRNewswire-FirstCall/ -- Hayes Lemmerz
International, Inc. (NASDAQ:HAYZ) today announced that it has
closed on the following recapitalization transactions: -- Equity
rights offering of $180 million and direct investment by Deutsche
Bank Securities, Inc. of $13.1 million; -- Senior secured credit
facilities of approximately $495 million, issued by a European
subsidiary; and -- 8 1/4% senior notes due 2015 of euro 130
million, issued by a European subsidiary. The proceeds from these
transactions were used: (i) to repay the 10 1/2% senior notes due
2010 of HLI Operating Company, Inc., a subsidiary of the Company;
(ii) to repay the Company's obligations under its Amended and
Restated Credit Agreement dated April 11, 2005; (iii) to pay
related transaction costs, fees and expenses; (iv) to provide
working capital; and (v) for other general corporate purposes.
James Yost, Vice President, Finance and Chief Financial Officer
said, "We are extremely pleased with the show of support from our
shareholders and our lenders. The rights offering was significantly
over-subscribed and there was strong interest from both U.S. and
European investors for our debt. By raising new equity capital and
retiring high-cost debt, we have reduced our leverage, strengthened
our balance sheet and significantly improved our free cash flow."
About Hayes Lemmerz International, Inc. Hayes Lemmerz
International, Inc. is a leading global supplier of automotive and
commercial highway wheels, brakes and powertrain components. The
Company has 30 facilities and approximately 8,500 employees
worldwide. 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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