The automotive industry is seeing a slight resurgence, despite talk that the sector is at the mercy of a weakening economy. A handful of auto credits traded up last week, dealers reported. Hayes Lemmerz is trading at 87, up from the low 80s. A $5 million piece of Tenneco Automotive's bank debt traded in the 75-76 range, from the low 70s. JL French's debt is trading in the low 80s. "Numbers are coming from Ford, General Motors, and Daimler Chrysler which are higher than people expected," a dealer said. Another trader agreed. "Expectations for car sales are better," he said.
Tenneco has a $1.55 billion deal that breaks down into four tranches and expires in 2008. Pricing is 33/4 %. JL French has a five-year, $431 million deal that breaks down into five tranches. J.P. Morgan Chase and Bank of America are the lead arrangers.