Hayes Lemmerz to launch $575 million loan Monday

By Sara Rosenberg

New York, April 30 - Hayes Lemmerz International Inc. is scheduled to launch its $575 million exit financing credit facility on Monday, according to a syndicate source. Citibank and Lehman Brothers are the lead banks on the deal.

The loan consists of a $450 million six-year term loan B and a $125 million five-year revolver. Price talk on the tranches is not out yet, according to the source.

Ratings on the proposed credit facility are still being finalized, the source added.

Previously timing on the deal had been fluid as the company was working on getting approval of its plan of reorganization from existing creditors. However, this hurdle was cleared during early April as the company announced that it reached an agreement with prepetition creditors on a reorganization plan and set a confirmation hearing for May 7.

The Northville, Mich. auto parts maker and its subsidiaries located in the United States and one subsidiary in Mexico filed voluntary petitions for reorganization under Chapter 11 on Dec. 5, 2001.

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