Moody’s rates Dana notes B2

Moody's Investors Service said it assigned a B2 rating to Dana Holding Corp.’s proposed $425 million of senior unsecured notes.

In a related action, the agency affirmed Dana's corporate family and probability of default ratings at Ba3 and Ba3-PD, respectively, along with the B2 ratings of the existing senior unsecured notes. The speculative grade liquidity rating is SGL-2.

The outlook is stable.

Proceeds from the notes are expected to be used in the company's announced tender offer of up to $360 million of its 6½% notes due 2019, to redeem $40 million aggregate principal amount of the 2019 notes, to pay related fees and expenses and for general corporate purposes.

The transaction is expected to push out related debt maturities to 2024 from 2019 and reduce related interest costs.

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