Tenneco driving by with $800 million eight-year secured notes; initial talk 5%-5¼%

By Paul A. Harris

Portland, Ore., March 3 – Tenneco Inc. plans to price an $800 million offering of senior secured notes due April 2029 (existing ratings Ba3/B/BB) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield 5% to 5¼%, a trader said.

Barclays is the lead bookrunner. BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities LLC are the joint bookrunners.

Truist Securities Inc., SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., Capital One Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., Commerz Markets LLC, Fifth Third Securities Inc., ING Financial Markets LLC, KBC Securities USA LLC, Mizuho Securities USA Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Santander Investment Securities Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S for life eight-year notes come with three years of call protection. They feature a 40% equity clawback at par plus the coupon during the non-call period, and a 101% poison put.

The Lake Forest, Ill.-based automotive components supplier plans to use the proceeds to refinance the Federal-Mogul senior secured notes due 2024.

Tenneco acquired Federal-Mogul in 2018.

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