NORTHVILLE, Mich., April 23 /PRNewswire-FirstCall/ -- Hayes Lemmerz International, Inc. announced today the distribution of rights in its previously announced $180 million rights offering (the "Rights Offering") and the execution of a commitment letter for a new $495 million senior secured credit facility.
The Company is distributing today to stockholders of record as of April 10, 2007, non-transferable subscription rights to purchase shares of its common stock in connection with the Rights Offering. Stockholders on the record date will receive 1.3970 rights for each share of the Company's common stock held on the record date. Each right entitles the holder to purchase one share of common stock at a price of $3.25 per share until 5:00 p.m. Eastern Daylight Time, on Monday, May 21, 2007, unless extended by the Company. Stockholders who receive rights through a bank or broker will receive instructions for exercising rights from their bank or broker and may be required to act prior to the stated expiration time. Hayes Lemmerz may terminate the Rights Offering for any reason prior to the expiration time.
The Rights Offering and the related agreements are subject to the approval of the Company's stockholders. A special meeting to approve the rights offering and certain other matters is scheduled to be held on May 4, 2007, at the Company's headquarters in Northville, Michigan.
Hayes Lemmerz also announced today that it has executed a commitment letter with Citigroup Global Markets Inc. ("Citigroup") and Deutsche Bank AG, New York Branch and Deutsche Bank Securities Inc. (together "Deutsche Bank") to provide new senior secured credit facilities in an amount of up to $495 million. Citigroup and Deutsche Bank will act as joint arrangers and joint book-runners for the syndication of the new credit facilities. The new credit facilities are expected to consist of a term loan facility of up to $350 million, which will be denominated in euros and placed with a subsidiary in Europe, a revolving credit facility of up to $125 million and a synthetic letter of credit facility of up to $20 million.
The proceeds of the new credit facilities will be used, together with the proceeds of other financing activities, to refinance the Company's obligations under its Amended and Restated Credit Agreement dated April 11, 2005. The refinancing of the Amended and Restated Credit Agreement and the placement of a portion of the Company's debt outside the United States are conditions to the obligation of Deutsche Bank Securities Inc. and SPCP Group, LLC, an affiliate of Silver Point Capital, L.P., to backstop the Rights Offering. Additional proceeds will be used to replace existing letters of credit and to provide for working capital and other general corporate purposes, and to pay the fees and expenses associated with the new credit facilities.
The Company and its officers and directors may be deemed to be participants in the solicitation of proxies from the Company's stockholders in connection with the approval of the Rights Offering and certain related proposals. Information about those officers and directors of the Company and their ownership of the Company's common stock is set forth in the proxy statement for the special meeting, which was filed with the Securities and Exchange Commission on April 18, 2007.
Forward Looking Statements
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.
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.