Matlin Patterson Asset Management has provided portfolio company Oxford Automotive with interim financing as the metal-formed systems supplier broods over the task of finding alternative financing. The Troy, Mich.-based company made a failed attempt late last month to complete a $240 million notes deal and a $75 million credit facility. The notes deal was pulled on account of market conditions, according to a spokeswoman. Lehman Brothers and Credit Suisse First Boston were leading the bond deal. It could not be confirmed if they were arranging the credit as well. Lehman and CSFB bankers did not return calls.
"We do still need to do a permanent financing solution and are currently evaluating what our alternatives are out there," the spokeswoman stated, declining to specify any discussions with possible lenders. "[Matlin Patterson] has committed to provide us [with] further interim funding," she added. The amount that Matlin Patterson has provided or is providing could not be determined. David Matlin, ceo of the firm, did not return calls.
"The need for auto paper kind of dried up," said Eric Ballantine, analyst at Standard & Poor's, addressing Oxford's timing for the thwarted financing plan. He added that Oxford's emergence from bankruptcy last year is a credit concern. The company needs to refinance many aspects of its debt, including bank debt and leases and debt for its Mexican locations, Ballantine explained, adding that Oxford is also building a new facility.