Intermet Corp.'s $90 million revolver and $120 million "B" loan traded upwards to the 95-96 and 94-94 1/4 range, respectively. A report released by Deloitte & Touche stating a higher equity valuation for the auto-parts maker pushed the name higher, said a trader.
Intermet filed for bankruptcy three months ago, citing colossal increases in steel prices and fixed contacts with Original Equipment Manufacturers (LMW, 10/1). The "B" loan then traded in the 78-80 context, while the revolver was seen in the upper 80s. Intermet has obtained a $60 million debtor-in-possession financing from Deutsche Bank and Bank of Nova Scotia. Intermet's pre-petition debt is also led by Scotia.
According to Bloomberg, other banks on Intermet's revolver include Deutsche Bank, Fifth Third Bank and Comerica Bank. Lenders on the term loan at the time of signing last January were American Express Asset Management, Angelo Gordon & Co., The Alcentra Group, The Blackstone Group, Callidus Capital Management, Highland Capital Management and Stanfield Capital Management. Intermet's revolver is priced at LIBOR plus 3 3/4% and the "B" loan is priced at LIBOR plus 4 1/4%. An Intermet spokesman did not return calls.