Dana plans $250 million term A, $1.78 billion notes for Driveline buy

By Sara Rosenberg

New York, March 9 – Dana Inc. plans on getting a $250 million incremental term loan A and issuing $1,775,000,000 of senior notes to help fund its acquisition of the Driveline division of GKN plc to create Dana plc, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Credit Suisse, Barclays, and Citigroup provided the debt commitment.

Net leverage will be around 2 times.

Under the agreement, the Driveline division is being bought for a total consideration comprised of $1.6 billion in cash proceeds to GKN, the assumption of about $1 billion of net pension liabilities and the issuance of 133 million new Dana plc shares to GKN’s shareholders, valued at approximately $3.5 billion.

Dana shareholders will own about 52.75% of the company and GKN shareholders will own 47.25%.

Closing is expected in the second half of this year, subject to shareholder and customary regulatory approvals.

Dana is a Maumee, Ohio-based supplier of drivetrain, sealing and thermal-management technologies. GKN Driveline is a U.K.-based supplier of driveshafts, all-wheel-drive systems and electrified driveline solutions. The combined company will be based in the U.K.

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