Dana talks $100 million tap of 5 3/8% notes due 2027 at 99.75-par; pricing Thursday

By Paul A. Harris

Portland, Ore., June 18 – Just two days after its most recent pass at the high-yield primary market Dana Inc. is back, driving by with a $100 million tap of its 5 3/8% senior notes due Nov. 15, 2027 (expected ratings B2/BB-/BB+), according to a syndicate source.

Price talk is 99.75 to par.

Books were scheduled to close at 11 a.m. ET on Thursday, with pricing and allocations to follow.

Citigroup Global Markets Inc. has the lead in a syndicate of bookrunners that includes Barclays, BMO Capital Markets Corp., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC, KeyBanc Capital Markets Inc., Citizens Capital Markets Inc. and Commerz Markets LLC.

The notes, which come in a public offering, become callable Nov. 15, 2022 at 102.688. They feature a 35% equity clawback at 105.375 until Nov. 15, 2022 and a 101% poison put.

The Maumee, Ohio-based supplier of automotive transmissions, axles and driveshafts plans to use the proceeds for general corporate purposes and to pay down its revolving credit facility.

The original $300 million issue price in November 2019.

Dana's Thursday add-on deal follows a $400 million issue of 5 5/8% senior notes due June 2028 (B2/BB-/BB+), which its priced at par to yield 5 5/8% in a Tuesday drive-by. Those notes traded Thursday at par ¼, according to a New York-based bond trader.

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