HAYZ Hayes Lemmerz International (MM)

Hayes Lemmerz Obtains Agreement to Amend Loan Terms NORTHVILLE, Mich., March 11 /PRNewswire-FirstCall/ -- Hayes Lemmerz International, Inc. (NASDAQ:HAYZ) announced today that it has obtained an agreement from its lenders to amend the Credit Agreement dated as of June 3, 2003 governing its $450 million Senior Secured Term Loan and $100 million Senior Secured Revolving Loan. The amendments will reduce debt costs related to these facilities, provide the Company with additional flexibility under the financial covenants and increase the Company's ability to fund growth opportunities. The amendments to the Credit Agreement will, among other things: * allow Hayes Lemmerz to proceed with its previously announced plan to offer approximately $150 million in Euro denominated senior unsecured notes and retain half of the net proceeds from the offering for general corporate purposes; * reduce the Company's interest rate on its Term Loan by 50 basis points; * favorably modify the financial covenants; * permit the Company to increase its Revolving Loan from $100 million up to $125 million; and * allow Hayes Lemmerz to retain half of the net proceeds from the proposed divestiture of its Commercial Highway Hubs and Drums business for capital expenditures. The effectiveness of these amendments is subject to a number of conditions, including the successful completion of the offering of the previously announced senior unsecured notes with net proceeds to the Company of at least Euro 100 million. James Yost, Vice President of Finance and Chief Financial Officer, said, "We are very pleased with the continued show of support from our lenders. This amendment to our Credit Agreement will provide the Company with additional financial flexibility to support our continuing strategy to expand in geographic and product areas where we can increase the Company's profitability and enhance shareholder value." Hayes Lemmerz International, Inc. is a world leading global supplier of automotive and commercial highway wheels, brakes, powertrain, suspension, structural and other lightweight components. The Company has 43 facilities and approximately 11,000 employees worldwide. This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations and beliefs concerning future events that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. All statements other than statements of historical facts included in this release are forward looking statements. Factors that could cause actual results to differ materially from those expressed or implied in such forward looking statements include the inability to successfully complete the offering of the new senior unsecured notes or satisfy the other conditions to the effectiveness of the amendment to the Credit Agreement, the inability to successfully complete the proposed divestiture of the Commercial Highway Hubs and Drums business, and the factors set forth in our periodic reports and other documents filed with the SEC. Consequently, all of the forward looking statements made in this press release are qualified by these and other factors, risks and uncertainties. The notes referred to in this press release will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any of the notes nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. DATASOURCE: Hayes Lemmerz International, Inc. CONTACT: Marika P. Diamond of Hayes Lemmerz International, Inc., +1-734-737-5162 Web site: http://www.hayes-lemmerz.com/

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