S&P: Tower Automotive notes unchanged

Standard & Poor's said its B issue-level rating and 3 recovery rating on Tower Automotive LLC's issuance of $430 million in 10.625% senior secured notes due 2017 are unchanged.

The final amount of the bonds issued and the actual coupon are now known, the agency added.

Net proceeds of this offering, along with cash on hand if needed, will be used to repay the company's outstanding debt under its first-lien term loan, not including its synthetic letter of credit, S&P said.

Net proceeds exceeding the amount needed to repay the term loan in full will be used to invest in working capital or for general corporate purposes, the agency stated.

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