Hayes Lemmerz approves equity rights offering of up to $180 million

By Lisa Kerner

Charlotte, N.C., March 16 - Hayes Lemmerz International, Inc. said its board of directors approved a rights offering of up to $180 million of common stock to its stockholders at a subscription price of $3.25 per share.

The offering is subject to stockholder approval, and no record date has been set, according to a company news release.

The company will use the net proceeds of the rights offering to repurchase the outstanding 10½% senior notes due 2010 issued by its subsidiary, HLI Operating Co. Inc., and to pay expenses related to the offering.

Deutsche Bank Securities, Inc. has agreed to backstop the rights offering, the company said. An equity agreement also gives Deutsche Bank the option to make a direct investment of up to $18 million in the company's common stock at the subscription price of $3.25 per share.

Hayes Lemmerz is a Northville, Mich., supplier of automotive and commercial highway wheels, brakes and powertrain components.

© 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.