Tenneco Inc (ticker: TEN, exchange: New York Stock Exchange (.N))
News Release -
Tenneco Amends and Extends Its Senior Credit Facility
LAKE FOREST, Ill., Jun 04, 2010 (BUSINESS WIRE) --Tenneco Inc. (NYSE: TEN) announced today that it has entered into an
agreement with its lenders to amend and extend its existing senior
credit facility. The amendment enhances the company's financial
flexibility by extending the term of its $550 million revolving credit
facility and replacing its existing $128 million term loan A facility
with a larger and longer maturity term loan B facility. The amendment
also includes improved pricing if Tenneco achieves additional reductions
in its net leverage ratio.
Under the amendment, the size of Tenneco's revolving credit facility
increases immediately from $550 million to $622 million until March 16,
2012, when commitments of $66 million from non-extending lenders expire.
Thereafter, until its extended maturity date of May 31, 2014, the
revolving credit facility will provide $556 million of total
availability. The extended facility will mature on April 15, 2013 if the
company's secured notes are not refinanced by that date or on December
14, 2013 if the company's tranche B-1 letter of credit/revolving loan
facility is not refinanced by that date.
The amendment provides for the refinancing of the $128 million term loan
A facility, which would have matured in March 2012 with a new $150
million term loan facility, which will mature on June 3, 2016. The new
term loan will mature on April 15, 2013 if the company's senior secured
notes are not refinanced by that date or on August 16, 2014 if the
company's senior subordinated notes are not refinanced by that date.
The company expects to record a charge in the second quarter of $1
million relating to the amendment and extension.
Tenneco is a $4.6 billion global manufacturing company with headquarters
in Lake Forest, Illinois and approximately 21,000 employees worldwide.
Tenneco is one of the world's largest designers, manufacturers and
marketers of emission control and ride control products and systems for
the automotive original equipment market and the aftermarket. Tenneco
markets its products principally under the Monroe(R), Walker(R), Gillet(TM) and
Clevite(R) Elastomer brand names.
SOURCE: Tenneco Inc.