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Tenneco receives consents to amend 11 5/8% notes
New York, May 13 - Tenneco Automotive said it received the necessary consents to amend the indenture for its 11 5/8% senior subordinated notes due 2009.
The company said that it executed a supplemental indenture but it will not become effective until Tenneco accepts the notes for payment.
Tenneco said on April 30 it had begun a cash tender offer and consent solicitation for its $500 million of 11 5/8% notes.
The Lake Forest, Ill., auto parts maker said the offer is part of the transaction announced April 16 designed to reduce leverage and annual interest expense. Tenneco said then it would sell $400 million of new notes and $150 million of stock.
In the offer, holders who tender their notes by the consent deadline of 5 p.m. ET on May 13 will receive $1,095.50 per $1,000 principal amount including a consent payment of $30.00 per $1,000 principal amount.
Holders who tender after the consent deadline but before the expiration date of midnight ET on May 27 will receive $1,065.50 per $1,000 principal amount.
In both cases, Tenneco will pay accrued interest up to but excluding the date of payment.
Holders who tender their notes will be required to consent to amendments to the note indenture which will, among other things, eliminate substantially all of the restrictive covenants, amend the satisfaction and discharge provisions and eliminate certain events of default.
Banc of America Securities LLC (contact High Yield Special Products at 888 292-0070 or 212 847-5834) and J.P. Morgan Securities (contact High Yield Capital Markets at 212 270-9153) are dealer managers. Global Bondholder Services (866 873-7700 or 212 430-3774) is the information agent.
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