From Detroit Free Press
NOVI, MI — Tower Automotive Inc., which makes body structures for car manufacturers, said it retained Rothschild LLC late last week as a financial adviser to help in arranging a $200-million loan.
Novi-based Tower is negotiating with financial institutions including General Electric Co. to establish a $200-million accounts-receivable securitization credit to bolster its liquidity because many of its car-manufacturing clients are discontinuing fast-payment programs. The loan would be backed by accounts receivable.
“Rothschild was hired because of their expertise in negotiating new loans,” said Sharon Wenzl, a spokeswoman for Tower.
Rising steel costs and decisions by customers such as Ford Motor Co. and General Motors Corp. to trim production, as well as to stop the payment programs, prompted Tower to seek credit.
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