Oxford Automotive restructures $240 million into fixed and floating tranches with warrants

By Paul A. Harris

St. Louis, Aug. 14 - Oxford Automotive Inc. restructured its $240 million high yield offering on Thursday, according to a market source.

The company now plans to sell $240 million in two tranches of units comprised of senior secured second lien notes with warrants for 2% of the company (B3/B-).

The deal contains a $140-$170 million of fixed rate tranche due 2011, with a T+50 make-whole call for the first four years, then callable at a premium. Price guidance is 12 5/8% area.

The company also plans to sell $70-$100 million of floating rate notes due 2008, non-callable for three years. Price guidance on the floating rate notes is Libor plus 875 basis points.

The warrants will be spread ratably.

Lehman Brothers and Credit Suisse First Boston are joint bookrunners on the Rule 144A offering. Comerica is co-manager.

Proceeds will be used to repay debt and for general corporate purposes.

Pricing is expected on Friday.

The company is a Troy, Mich.-based metal-formed assemblies supplier for automotive industry.

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