Oxford Automotive agrees with noteholders on $100 million credit facility, to miss coupon

New York, Sept. 15 - Oxford Automotive Inc. said it has agreed to a term sheet for a new $100 million credit facility with some members of an ad hoc committee of holders of its 12% senior notes due 2010.

The members of the Lending Group hold more than 51% of the notes.

The company also said it does not expect to pay the Oct. 15 coupon on the notes.

The $100 million would be made up of initial and deferred term loans totaling $100 million, which Oxford would use to refinance its existing senior credit facility, pay fees and expenses and provide up to $50 million more to fund its operations.

All noteholders will be offered the opportunity to participate in the facility.

At this stage the term sheet is non-binding.

The Troy, Mich., supplier of stampings and welded assemblies said that the new capital would help alleviate its short-term liquidity issues. The issues were created, in part, by the pre-launch expenses at its new McCalla, Ala., plant that will supply the underbody assemblies for the Mercedes M-Class, launching in December of this year, and the Grand Sports Tourer, due to launch in mid-2005.

In connection with the financing, Oxford will be seeking amendments to the senior note indenture and temporary waivers of existing defaults under other indenture provisions.

Oxford hopes to close the financing by the end of the month.

The company said it intends to continue negotiations with the lending group and the noteholders' committee over its expected non-payment of the upcoming coupon on the notes.

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