Hayes Lemmerz prices tender consideration for 10½% notes

By Jennifer Chiou

New York, May 21 - Hayes Lemmerz International Inc. announced that its indirect subsidiary, HLI Operating Co., Inc., set pricing in the cash tender offer for all of its $157 million of 10½% senior notes due 2010.

For each $1,000 principal amount, the company said it will pay $1,057.80, which was calculated using the 3.625% Treasury due June 30, 2007 and a fixed spread of 50 basis points, plus $2.62. The payout includes a $30.00 consent payment for those who tendered by the consent deadline.

Pricing was fixed at 2 p.m. ET on May 21. The reference yield was 4.72%.

The company will also pay accrued interest up to but excluding the payment date.

As of the consent deadline at 5 p.m. ET on May 21, holders of $153.178 million, or about 97%, of the notes had tendered their securities.

The Northville, Mich., supplier of automotive and commercial highway wheels, brakes and powertrain components is soliciting consents to amend the indenture to, among other things, eliminate substantially all restrictive covenants, certain related events of default and conditions on the defeasance of the notes, and certain limitations on the ability of HLI and Hayes Lemmerz to merge, consolidate, sell all or substantially all of their assets, and enter into similar transactions.

In addition, the proposed amendments will permit notice of redemption of the notes and the intended redemption to occur on the same day.

The offer ends at 11:59 p.m. ET on June 5. It began on May 9.

The offer is conditioned on tenders from holders of a majority of notes, sufficient financing as well as the execution of a supplemental indenture.

HLI said that it will use proceeds from Hayes Lemmerz's previously announced $180 million equity rights offering to fund the tender offer.

Deutsche Bank Securities Inc. is the dealer manager and solicitation agent (contact Patricia McGowan at 212 250-7772). Innisfree M&A Inc. is the information agent (call collect 212 750-5833 or 888 750-5834).

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