A $9 million piece of Hayes Lemmerz International's pro rata traded around 87 out of Sanwa Bank early last week, calls to the bank were not returned. The buyer could not be determined. It was the first trade for the credit. "[The company is] getting crushed because the demand for cars is decreasing," a market watcher said. The Romulus, Mich.-based company, which makes steel and aluminum wheels for vehicles, is said to be feeling the effects of a weak automotive sector. General Motors,Ford and Daimler Chrysler account for 60% of its sales. A company spokesman did not return calls for comment.
Hayes Lemmerz has a $1.1 billion credit facility that breaks down into two tranches. It expires in four years and is priced at 200 basis points over LIBOR. CIBC World Markets, Dresdner Bank, Credit Suisse First Boston, and Merrill Lynch are the mandated arrangers, according to Capital DATA Loanware.