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Federal-Mogul amends, extends revolver, lifting size to $550 million
By Jennifer Chiou
New York, Dec. 9 - Federal-Mogul Corp. entered into on Dec. 6 an amendment to its term loan and revolving credit agreement, increasing the aggregate commitments available under its replacement revolving credit facility to $550 million from $540 million, according to an 8-K filing with the Securities and Exchange Commission.
Citicorp USA, Inc. acted as administrative agent with JPMorgan Chase Bank, NA as syndication agent and Wachovia Capital Finance Corp. and Wells Fargo Foothill, LLC as co-documentation agents.
The company also extended the maturity of the replacement revolver to Dec. 6, 2018 and amended its borrowing base to provide Federal-Mogul with additional liquidity. The filing stated that the amendment does not change the existing tranche B or tranche C term loans.
Borrowings under the revolver will bear interest at Libor plus 150 basis points to 200 bps. There is an unused commitment fee of 37.5 bps.
Also on Dec. 6, High River Limited Partnership, an affiliate of Carl C. Icahn and Federal-Mogul's largest stockholder, entered into a backstop commitment letter in connection with the tranche B term loan that matures in December 2014.
The 8-K said that the backstop commitment provides that if the company is unable to refinance its tranche B term loan on or prior to Sept. 27, 2014, High River or an affiliate will provide loan financing of up to $1.6 billion to Federal-Mogul and its subsidiaries on arms-length terms to provide the funding necessary to repay the B term loan.
Federal-Mogul is a Southfield, Mich.-based supplier of powertrain and safety technologies.
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