S&P puts Hayes Lemmerz on positive watch

Standard & Poor's said it placed its B- corporate credit rating and related issue ratings on Hayes Lemmerz International Inc. on CreditWatch with positive implications, following the company's announcement that it plans to repurchase its senior unsecured debt with proceeds from an equity rights offering.

Hayes' recovery ratings were not placed on CreditWatch, the agency noted.

S&P added that Hayes announced that its board of directors has approved a rights offering of up to $180 million common stock and that proceeds would be used to repurchase the $157 million outstanding of Hayes' 10.5% senior unsecured notes due 2013, which are issued by subsidiary HLI Operating Co. Inc. and to pay related fees and expenses.

In its CreditWatch review, S&P said it will assess the industry challenges facing Hayes, as well as the benefits of lower leverage and improved credit metrics that likely would result from completion of the proposed transactions.

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