Hayes Lemmerz to redeem notes and repay term debt with common stock proceeds

By Sara Rosenberg

New York, Jan. 23 - Hayes Lemmerz International Inc. plans to redeem $22.6 million of its outstanding 10½% senior notes due 2010 and repay $54.2 million of its six-year term loan with proceeds from a common stock offering, according to a filing with the Securities and Exchange Commission.

All in all, the company expects proceeds of about $97.9 million from the common stock sale. Any remaining proceeds, after the bond and bank debt repayments, will be used for general corporate purposes, the filing said.

The redemption price for the notes will be 110.5% plus accrued and unpaid interest.

As of Oct. 31, the company had $448.9 million outstanding under its term loan bearing interest at a rate of Libor plus 375 basis points.

Both the bonds and the bank debt were obtained as part of the Northville, Mich., auto parts maker's emergence from Chapter 11 in June 2003.

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