J.P. Morgan and Credit Suisse First Boston's credit for TriMas, backing the spinoff from Metaldyne is offering a $300 million "B" piece, and could take out Metaldyne debt at 101. That twist is playing well with investors who bought in the mid-80s when Metaldyne was struggling, noted one buysider. Heartland Industrial Partners bought Metaldyne in November 2000 and now wants to separate the TriMas business, as it has little strategic fit within Metaldyne, said a banker. Separating the two will enable both to grow, he added.
The Metaldyne debt is inching towards par and is now trading at 99, said one banker. He was expecting the Metaldyne debt to go higher, but added he has mixed feelings on TriMas. "It's cyclical and is not in a great sector." Trimas makes trailer hitches for SUV's and light trucks, while Metaldyne is an automobile-components manufacturer. Calls to finance officials at Metaldyne were referred to spokesman Kurt Roecke, who declined comment. Dan Tredwell, a partner at Heartland, did not return calls.