Affinia Group roadshows seven-year secured notes sale, pricing Friday

By Paul Deckelman

New York, Aug. 3 - Affinia Group Inc. announced plans Monday to sell $225 million of senior secured notes due 2016. A high yield syndicate source said that the company was beginning a roadshow on Monday to market the deal to potential investors, with pricing expected this coming Friday.

The automotive parts manufacturers' offering is being managed by underwriters JP Morgan Chase & Co., Bank of America Merrill Lynch, Barclays Capital and Deutsche Bank Securities.

The notes, which will be non-callable for the first four years after issue, are being sold under Rule 144A and will carry that designation for the life of the issue.

The debt will be secured by a first-lien on everything except its current assets; those will be used to secure a $315 million asset-backed revolver which the company is expected to launch shortly.

Affinia said that it plans to use the deal proceeds, together with funds from unspecified other sources, i.e. the expected new revolver, to repay its existing term loan, its existing revolving credit facility, and its accounts receivable securitization facility.

Moody's Investors Service assigned the upcoming bond issue a B1 rating.

Ann Arbor, Mich.-based Affinia is a designer, manufacturer and distributor of automotive aftermarket components - notably brakes, filtration and chassis products -- for passenger cars, SUVs, light and heavy trucks and off-highway vehicles. It was formed when Toledo, Ohio-based automotive components manufacturer Dana Corp. sold its automotive aftermarket business to Cypress Group, a private-equity company, in December 2004.

Sara Rosenberg contributed to this story.

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