Federal-Mogul launches extended term loan at Libor plus 375 bps

By Sara Rosenberg

New York, Dec. 5 - Federal-Mogul Corp. launched its proposed extended term loan B on Wednesday with price talk of Libor plus 375 basis points, versus non-extended pricing of Libor plus 193.75 bps, according to a market source.

The company is looking to extend about $1.2 billion of its roughly $1.8 billion term loan B to January 2017 from December 2014, the source said.

Lenders are being offered a 2.5 bps consent fee and a 10 bps extension fee, the source added.

In addition, the company is looking to increase its asset-based revolving credit facility and extend the maturity as well.

J.P. Morgan Securities LLC and Wells Fargo Capital Finance LLC are the lead banks on the deal, and have each committed $125 million to the revolver.

The amendment and extension is conditioned on the prepayment of up to $300 million of the extended term loan, the source said.

The company entered into an agreement to issue about $150 million of common stock to Icahn Enterprises LP and will commence a subsequent rights offering of $150 million to shareholders of record.

Closing is expected this quarter.

Federal-Mogul is a Southfield, Mich.-based supplier of powertrain and safety technologies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.