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Tenneco plans November close for buyout, after debt financing wraps
By Sara Rosenberg
New York, Oct. 28 – Tenneco said in an 8-K filed with the Securities and Exchange Commission on Friday that it expects to close on its acquisition by Apollo in mid-November, promptly after the completion of certain debt financing activities.
All conditions to the buyout closing with respect to antitrust and/or foreign direct investment laws have been satisfied or waived.
In March, the company disclosed commitments for $3 billion of senior secured credit facilities and plans to issue up to $3 billion of notes to help fund the buyout and refinance some existing debt.
As committed, the credit facilities consist of a $600 million revolver and a $2.4 billion first-lien term loan.
In the March SEC filing, the company said it intends to issue up to $2 billion of senior secured notes and up to $1 billion of senior unsecured notes, but the amount of the new notes would be reduced by the amount of any of Tenneco’s outstanding senior secured notes and outstanding senior unsecured notes that remain outstanding on the closing date of the transactions.
Backing the proposed notes is a commitment for a $2 billion senior secured first-lien bridge loan and a $1 billion senior unsecured bridge loan.
Citigroup Global Markets Inc. is the left lead on the debt financing.
Other funds for the transaction are expected to come from $1.65 billion of equity.
Under the agreement, Tenneco is being purchased for $20.00 per share. The transaction has an enterprise valuation of about $7.1 billion, including debt.
Tenneco is a Lake Forest, Ill.-based designer, manufacturer and marketer of automotive products for original equipment and aftermarket customers.
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