By Paul A. Harris
St. Louis, Oct. 24 - Oxford Automotive, Inc. priced a slightly upsized offering of $280 million of 12% senior secured notes due Oct. 15, 2010 (B3/CCC+) at 85.0 on Friday to yield 15.6%, according to a source close to the deal.
The deal was increased from the announced size of $240 million.
According to the source, $113 million of the new notes were exchanged for the company's bank debt, with $167 million going to investors. Gross proceeds were $142 million.
Jefferies & Co. ran the books on the Rule 144A deal.
Proceeds will be used to repay existing debt and fund working capital.
The issuer is a Troy, Mich.-based supplier of specialized welded metal assemblies and related services.
| Issuer: | Oxford Automotive, Inc.
|
| Issue: | Senior secured notes
|
| Offering: | $280 million ($113 million existing bank debt exchanged for $113 million new notes and $167 million principal amount new notes issued to investors)
|
| Gross proceeds: | $142 million (excluding bank debt rollover)
|
| Maturity: | Oct. 15, 2010
|
| Bookrunner: | Jefferies
|
| Coupon: | 12%
|
| Price: | 85.0
|
| Yield: | 15.6%
|
| Call features: | Treasuries plus 50 basis points make-whole call until Oct. 15, 2007, then callable at 106, then 103, declining to par on Oct. 15, 2009 and thereafter
|
| Equity clawback: | Until Oct. 15, 2006 for 35% at 112.0
|
| Settlement date: | Nov. 4
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Rule 144A Cusip: | 690903AL3
|
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