Hayes Lemmerz Completes New $65 Million U.S. Asset Based Receivables Securitization Facility
May 31 2006 - 6:30PM
PR Newswire (US)
NORTHVILLE, Mich., May 31 /PRNewswire-FirstCall/ -- Hayes Lemmerz
International, Inc. (NASDAQ:HAYZ) announced today that it has
established a new $65 million U.S. asset-backed receivable
securitization facility in order to improve its overall liquidity
and diversify its funding sources. The new facility replaces the
domestic accounts securitization program currently in place. The
facility provides revolving credit for the purpose of financing
trade receivables through a special purpose vehicle. The facility
will be funded by several financial institutions, which will make
loans secured by the receivables to the special purpose vehicle.
The proceeds of the initial loans are expected to be used to pay
off the existing securitization facility and for general corporate
purposes. Funding made under the facility will bear interest at
LIBOR plus 2.50%. The facility has an expiration date of June 3,
2008. "This securitization facility provides Hayes Lemmerz with
approximately $30 million of incremental liquidity. It replaces an
existing program that was limited by certain customer receivable
concentration limits," said James Yost, Chief Financial Officer.
"The Company remains focused on ensuring adequate liquidity. We are
pleased with the continued support shown by our lenders." 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 35 facilities and approximately 10,000 employees
worldwide. 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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