June 1, 2006 -- Hayes Lemmerz International Inc. has established a new $65-million receivable securitization facility it will use to improve its overall liquidity and diversify its funding sources. This new facility is backed by Hayes Lemmerz’s U.S. assets, andwill replace domestic accounts securitization program currently in place.
The Northville, MI-based company manufacturers automotive and commercial highway wheels, brakes, powertrain, suspension, structural, and other lightweight components. It has 35 facilities worldwide.
In its statement, Hayes Lemmerz indicated the proceeds of the initial loans from the new facility are expected to be used to pay off the existing securitization facility, and for general corporate purposes
CFO James Yost stated: "This securitization facility provides Hayes Lemmerz with approximately $30 million of incremental liquidity. It replaces an existing program that was limited by certain customer receivable concentration limits.
"The company remains focused on ensuring adequate liquidity. We are pleased with the continued support shown by our lenders," added Yost.