Tower Automotive's $425 million first-lien and $155 million second-lien tranche traded actively in the 98 1/4-99 and 99 1/4-100 1/2 range, respectively, as the company revised third quarter earnings expectations. The auto-parts maker said in a release it expects losses of between $22.5-25 million, citing rising steel costs, lower production volumes and higher launch costs as reasons for the lower guidance for the quarter. A Tower spokeswoman did not return calls.
Trading activity was also registered on Metaldyne's "D" loan and Meridian Automotive Systems's $310 million first-lien and $175 million second-lien loans. Metaldyne's "D" softened to 98 1/2-99 from 99 1/2-100 3/8. Meanwhile, Meridian's first-lien and second-lien tranches recovered to the 95 3/4-96 3/4 range and 92-94 context from the 94 1/2-95 1/2 and 90-92 levels. Last month, Intermet Corp. and Citation Corp. filed for bankruptcy in response to rising scrap steel costs (LMW, 9/27).