Dana negotiating financial covenant revisions for June 30 and Sept. 30

By Sara Rosenberg

New York, May 6 - Dana Corp. is in talks with lenders about revising two covenants in its credit facility because of non-compliance concerns, according to a 10-Q filed with the Securities and Exchange Commission Friday.

The two tests at issue are the EBITDA minus capital expenditures to interest expense ratio and the net senior debt to EBITDA ratio as of June 30 and Sept. 30.

The company is basing its concerns on levels of EBITDA and capital spent in the fourth quarter of 2004 and the first quarter of 2005.

Currently, EBITDA minus capital expenditures to interest expense is required to be no less than 2:1 at June 30 and Sept. 30.

Net senior debt to EBITDA is currently required to be no greater than 2.75:1 at June 30 and Sept. 30.

Dana is a Toledo, Ohio-based supplier of components, modules and systems to global vehicle manufacturers and related aftermarkets.

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