Dana Holding enters into new a $500 million five-year ABL facility

By Tali David

Minneapolis, June 25 - Dana Holding Corp. entered into a second amended and restated revolving credit and guaranty agreement, according to an 8-K filed with the Securities and Exchange Commission.

Citibank, NA is the administrative agent and collateral agent for the facility that replaced Dana's previous $500 million asset-based revolving credit facility.

The facility has a five-year term and availability of $500 million, subject to a borrowing base that is based on a specified percentage of eligible accounts receivable and inventory, reduced for outstanding credit advances or letter of credit issuances.

The facility bears interest at a floating rate based on, at Dana's option, (a) A Eurodollar Rate plus an applicable margin of (i) 1.5% if availability is greater than $350 million; (ii) 1.75% if availability is greater than $150 million but less than or equal to $350 million; and (iii) 2% if availability is less than or equal to $150 million; or (b) a Base Rate plus an applicable margin of (i) 0.5% if availability is greater than $350 million; (ii) 0.75% if availability is greater than $150 million but less than or equal to $350 million; and (iii) 1% if availability is less than or equal to $150 million.

In addition to paying interest on outstanding principal under the facility, Dana will be required to pay a commitment fee to the lenders in respect of the unutilized commitments at an initial rate equal to (a) 0.375% per annum, if the average daily unused portion of the commitment is equal to or greater than 50% of the aggregate commitment or (b) 0.25% per annum, if the average daily unused portion of the commitment is less than 50% of the aggregate commitments.

Castleton Commodities, formerly Louis Dreyfus Highbridge Energy, is a Stamford, Conn.-based diversified merchant energy company.

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