New Issue: Tenneco prices $125 million add-on to 10¼% notes at 113 to yield 7.775%

By Paul A. Harris

St. Louis, Dec. 8 - Tenneco Automotive, Inc. priced a $125 million add-on to its 10¼% senior secured second lien notes due July 15, 2013 (B2/CCC+) at 113 on Monday, resulting in a 7.775% yield to worst, according to a syndicate source.

Price talk was 113-113.5.

Banc of America Securities and Citigroup were bookrunners. The co-managers were BancOne Capital Markets, Commerzbank and BNY Securities.

Tenneco will use proceeds to refinance bank debt.

The issuer is a Lake Forest, Ill. auto parts maker.

The original $350 million deal priced on June 10.

Issuer:	Tenneco Automotive, Inc.
Amount:	$125 million
Security description:	Add-on to 10¼% senior secured second lien notes due 2013
Bookrunners:	Banc of America Securities, Citigroup
Co-managers:	BancOne Capital Markets, Commerzbank, BNY Securities
Maturity:	July 15, 2013
Coupon:	10¼%
Price:	113
Yield to worst:	7.775%
Spead:	351 basis points
Call features:	Callable after July, 15, 2008 at 105.125, 103.417, 101.708, par on July 15, 2011 and thereafter
Equity clawback:	For 35% at 110.25 until July 15, 2006
Settlement date:	Dec. 12 with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: CCC+
Price talk:	113-113.50

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