Meridian Automotive pulls IPO, taking bank and bond deal with it

By Sara Rosenberg

New York, Feb. 25 - Meridian Automotive Systems Inc. pulled its proposed initial public offering of common stock, citing poor market conditions as the impetus for the decision, according to a filing with the Securities and Exchange Commission. Both the company's proposed $275 million credit facility and issuance of $250 million senior subordinated notes were contingent upon the IPO.

The $275 million senior secured credit facility was expected to consist of a $150 million term loan due 2009 and a $125 million five-year revolver. The bank facility was also expected to provide for an incremental term loan, under which the Dearborn, Mich. auto parts company can borrow up to an additional $100 million.

The senior subordinated notes were anticipated to be non-callable for five years and mature in 2012.

Credit Suisse First Boston was slated to be lead managing underwriter for the IPO, lead manager for the note offering and administrative agent for the credit facility.

Proceeds from the IPO, notes and bank loan were to be used to repay outstanding indebtedness.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.