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Tenneco Auto amends loan to cut spreads by 75 basis points
By Sara Rosenberg
New York, Feb. 24 - Tenneco Automotive Inc. amended its credit facility, reducing the interest rates on its term loan B and tranche B-1 letter-of-credit facility/revolver by 75 basis points to Libor plus 225 basis points, according to an 8-K filed with the Securities and Exchange Commission Thursday.
Additional provisions of the amendment include changing the definition of EBITDA to exclude up to $60 million in restructuring-related expenses occurring after February 2005, increasing permitted investments to $50 million, excluding expenses related to the issuance of stock options from consolidated net income, permitting the redemption of up to $125 million of senior secured notes after Jan. 1, 2008 and increasing the company's ability to add commitments under the revolver by $25 million.
"Amending our senior credit facility provides additional financial flexibility and reflects the progress we have made in improving our operations and performance," said Mark P. Frissora, chairman and chief executive officer, in a company news release. "We believe our consistent and proven strategies for growing our businesses, reducing costs and improving operational flexibility and efficiency will continue to drive our No. 1 goal of generating cash to pay down debt."
JPMorgan Chase Bank is the administrative agent on the loan.
The amendment, which was completed on Feb. 17, became effective on Thursday.
Tenneco is a Lake Forest, Ill.-based designer, manufacturer and marketer of emission control and ride control products and systems for the automotive original equipment market and the aftermarket.
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