Federal-Mogul withdraws $2.3 billion facility due to market conditions

By Sara Rosenberg

New York, June 20 - Federal-Mogul Corp. pulled its $2.3 billion senior secured credit facility from market as a result of volatile conditions, according to a market source.

The facility consisted of a $1.75 billion seven-year covenant-light term loan B (Ba3/B) talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, and a $550 million asset-based revolver (Ba2).

Citigroup Global Markets Inc. was the lead bank on the deal.

Proceeds were going to be used to refinance existing debt.

The company said in a news release that it "will continue to evaluate market conditions and other relevant factors in connection with the potential refinancing of all or a portion of [its] outstanding indebtedness."

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

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