Hayes Lemmerz Announces Completion of Previously Announced Rights Offering and Related Debt Refinancing

NORTHVILLE, Mich., May 30  /PRNewswire-FirstCall/ -- Hayes Lemmerz International, Inc. (NASDAQ:HAYZ) today announced that it has closed on the following recapitalization transactions:

  -- Equity rights offering of $180 million and direct investment by
     Deutsche Bank Securities, Inc. of $13.1 million;

  -- Senior secured credit facilities of approximately $495 million, issued
     by a European subsidiary; and

  -- 8 1/4% senior notes due 2015 of euro 130 million, issued by a
     European subsidiary.



The proceeds from these transactions were used: (i) to repay the 10 1/2% senior notes due 2010 of HLI Operating Company, Inc., a subsidiary of the Company; (ii) to repay the Company's obligations under its Amended and Restated Credit Agreement dated April 11, 2005; (iii) to pay related transaction costs, fees and expenses; (iv) to provide working capital; and (v) for other general corporate purposes.

James Yost, Vice President, Finance and Chief Financial Officer said, "We are extremely pleased with the show of support from our shareholders and our lenders. The rights offering was significantly over-subscribed and there was strong interest from both U.S. and European investors for our debt. By raising new equity capital and retiring high-cost debt, we have reduced our leverage, strengthened our balance sheet and significantly improved our free cash flow."

About Hayes Lemmerz International, Inc.

Hayes Lemmerz International, Inc. is a leading global supplier of automotive and commercial highway wheels, brakes and powertrain components. The Company has 30 facilities and approximately 8,500 employees worldwide. 

DATASOURCE: Hayes Lemmerz International, Inc.



CONTACT: Marika P. Diamond of Hayes Lemmerz International, Inc.,

[phone] 



Web site: http://www.hayes-lemmerz.com/ 

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