Wheel maker Hayes Lemmerz International Inc. has withdrawn its planned $150 million bond offering. The funds were to have paid down debt and paid for projects in the Czech Republic, Turkey, Thailand and Mexico.
General Motors' announcement that it expects a first-quarter loss and lower 2005 earnings put a damper on Hayes Lemmerz's efforts to raise money in the high-yield market, says John Murphy, a Merrill Lynch analyst.
The Northville, Mich., supplier is facing stiff financial headwinds from steel prices and heavy dependence on the Big 3. GM is 44 percent of Hayes Lemmerz's sales.