Hayes amendment details include price increases with covenant easing

By Sara Rosenberg

New York, April 3 - Hayes Lemmerz International Inc. outlined details of the amendment to its $625 million senior secured credit facility, including that pricing on its term loans was increased in connection with the easing of some financial covenants, according to an 8-K filed with the Securities and Exchange Commission Monday.

More specifically, pricing on the company's term loan B was raised by 25 basis points to Libor plus 350 bps and pricing on the term loan C was raised by 50 bps to Libor plus 600 bps.

As for the financial covenants, the company gained more room under its maximum leverage ratios (see table 1), minimum interest coverage ratios (see table 2) and minimum fixed-charge coverage ratios (see table 3).

Furthermore, the amount of permitted capital expenditures was reduced to $100 million for the fiscal years ending Jan. 31, 2007 and Jan. 31, 2008, $110 million for the fiscal year ending Jan. 31, 2009 and $120 million for the fiscal year ending Jan. 31, 2010.

The amendment was completed on March 31.

Citigroup is the administrative agent on the deal.

Hayes Lemmerz is a Northville, Mich., auto parts maker.

Table 1: Amended Maximum Leverage Ratio Covenant

Fiscal Quarter Ending First-Lien Maximum Leverage Second-Lien Maximum Leverage

January 31, 2006 4.75 to 1 5.25 to 1

April 30, 2006 6.50 to 1 7.00 to 1

July 31, 2006 6.50 to 1 7.00 to 1

October 31, 2006 6.50 to 1 7.00 to 1

January 31, 2007 6.50 to 1 7.00 to 1

April 30, 2007 6.25 to 1 6.75 to 1

July 31, 2007 6.00 to 1 6.50 to 1

October 31, 2007 5.65 to 1 6.15 to 1

January 31, 2008 5.00 to 1 5.50 to 1

April 30, 2008 5.00 to 1 5.50 to 1

July 31, 2008 4.75 to 1 5.25 to 1

October 31, 2008 4.50 to 1 5.00 to 1

January 31, 2009 4.00 to 1 4.50 to 1

April 30, 2009 4.00 to 1 4.50 to 1

July 31, 2009 4.00 to 1 4.50 to 1

October 31, 2009 and thereafter 3.75 to 1 4.75 to 1

Table 2: Amended Minimum Interest Coverage Ratio

Fiscal Quarter Ending First-Lien Interest Coverage Second-Lien Interest Coverage

January 31, 2006 2.50 to 1 2.20 to 1

April 30, 2006 1.80 to 1 1.65 to 1

July 31, 2006 1.80 to 1 1.65 to 1

October 31, 2006 1.65 to 1 1.50 to 1

January 31, 2007 1.65 to 1 1.50 to 1

April 30, 2007 1.65 to 1 1.50 to 1

July 31, 2007 1.75 to 1 1.60 to 1

October 31, 2007 1.85 to 1 1.70 to 1

January 31, 2008 2.00 to 1 1.85 to 1

April 30, 2008 2.00 to 1 1.85 to 1

July 31, 2008 2.20 to 1 2.05 to 1

October 31, 2008 2.35 to 1 2.20 to 1

January 31, 2009 2.50 to 1 2.35 to 1

April 30, 2009 2.50 to 1 2.35 to 1

July 31, 2009 2.60 to 1 2.45 to 1

October 31, 2009 2.60 to 1 2.45 to 1

January 31, 2010 2.75 to 1 2.60 to 1

April 30, 2010 2.75 to 1 2.60 to 1

July 31, 2010 2.85 to 1 2.70 to 1

Table 3: Amended Minimum Fixed-Charge Coverage Ratio

Fiscal Quarter Ending First-Lien Fixed Charge Coverage

January 31, 2008 1.00 to 1

April 30, 2008 1.00 to 1

July 31, 2008 1.00 to 1

October 31, 2008 1.00 to 1

January 31, 2009 1.00 to 1

April 30, 2009 1.15 to 1

July 31, 2009 1.15 to 1

October 31, 2009 1.25 to 1

January 31, 2010 1.25 to 1

April 30, 2010 and thereafter 1.50 to 1

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