Dana extends, cuts pricing on revolver, term loan A, lifts revolver

By Sarah Lizee

Olympia, Wash., Sept. 4 – Dana Inc. amended its credit agreement on Friday with Citibank, NA as administrative agent to increase the existing revolving facility by $250 million to $1 billion, according to an 8-K filing with the Securities and Exchange Commission.

The third amendment extends the maturity dates of the revolver and the existing term loan A tranche by two years to August 2024.

The maturity date of the existing term loan B tranche was not affected.

Pricing of the revolver and term A facility was reduced by 25 basis points at Libor or Euribor plus 125 bps to 175 bps, based on Dana’s total net leverage ratio.

In addition, Dana is required to pay a commitment fee to the lenders in respect of the unused commitments at a rate between 25 bps and 50 bps per annum that is determined by reference to Dana’s total net leverage ratio.

The term B facility continues to bear interest at Libor plus 225 bps.

Under the third amendment, the term A facility amortizes in equal quarterly installments of about $7.4 million on the last day of each fiscal quarter, starting on Sept. 30, 2020.

Revolving loans may now be requested in dollars, pound sterling, euros and other currencies to be agreed.

The proceeds of the revolver may be used to provide financing for working capital, capital expenditures and other general corporate purposes.

Dana is a Maumee, Ohio-based supplier of drivetrain, sealing and thermal-management technologies.

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