JPMorgan and Deutsche Bank drove a refinancing for Tenneco to market last Thursday. The financing consists of a five-year, $375 million revolver and a five-year, $100 million term loan "A." It also consists of a $355 million institutional facility split between a $177.5 million term loan "B" and $177.5 million synthetic letter of credit. Pricing on the revolver and "A" loan is LIBOR plus 1 1/2% and pricing on the "B" and LC is LIBOR plus 1 3/4%.
According to a press release, the company plans to use the proceeds of the financing to repay about $356 million of outstanding term loans under its existing credit facility, to replace an existing $155 million synthetic letter of credit facility and an existing $320 million revolver set to expire in December 2008. Kenneth Trammell, executive v.p. and cfo, was out of the office and could not be reached
Based in Lake Forest, Ill., Tenneco designs and manufactures emission control products for the automotive market under the brand names Monroe, Walker, Gillet and Clevite.