Hayes Lemmerz holds lender call asking to reprice term B, allow for note issuance

By Sara Rosenberg

New York, March 3 - Hayes Lemmerz International Inc. held a conference call on Thursday afternoon asking lenders to reprice its $450 million term loan B at Libor plus 325 basis points from Libor plus 375 basis points and allow for the issuance and distribution of proceeds of about $150 million in euro-denominated senior unsecured notes, according to a market source.

Furthermore, the company is looking to modify some financial covenants and gain permission to use about 50% of the net proceeds from the proposed divestiture of the company's Commercial Highway Hub and Drum business for capital expenditures.

The company plans to use about half of the net proceeds from the note offering for general corporate purposes and the balance to repay a portion of its term loan facility.

Citigroup is the lead bank on the deal.

Consents from lenders are due on March 10.

Hayes Lemmerz is a Northville, Mich., supplier of automotive and commercial highway wheels, brakes, powertrain, suspension, structural and other lightweight components.

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