Metaldyne: 57% of 11% noteholders sign lockup agreement

By Angela McDaniels

Seattle, Oct. 13 - Metaldyne Corp. said holders of $141.425 million of its $250 million outstanding 11% senior subordinated notes due 2012 entered into a lockup agreement under which they will tender their notes or provide any requested consent only if such tenders or consents are agreed to by a supermajority - 90% in principal amount of the notes and two-thirds of the noteholders who signed the agreement.

If the supermajority agrees to accept a tender or provide consents, each noteholder covered by the agreement will be required to accept a tender or provide consents.

The noteholders are represented by the law firm of Brown Rudnick Berlack Israels LLP, according to a Metaldyne news release.

Metaldyne planned to hold a tender offer for a minimum of $225 million of its 11% notes and its 10% subordinated notes due 2014 in connection with its Sept. 1 agreement to be acquired by Asahi Tec Corp.

Subsequently, Metaldyne and Asahi Tec began discussions as to whether the acquisition and tender offer "should be pursued on the previously contemplated basis or at all" in light of production cutbacks and inventory reductions at Ford Motor Co., DaimlerChrysler Corp. and General Motors Corp. and Metaldyne's expectation that financial results for the third quarter will be lower than expected, according to an 8-K report filed with the Securities and Exchange Commission on Oct. 4.

Metaldyne is a Plymouth, Mich., supplier of powertrain and chassis systems and components.

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