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Tenneco readies launch of $1.4 billion term loan B for Tuesday
By Sara Rosenberg
New York, Oct. 31 – Tenneco Inc. (Pegasus Merger Co.) is set to hold a lender call at 1:30 p.m. ET on Tuesday to launch a $1.4 billion six-year covenant-lite senior secured term loan B, according to a market source.
The company is also getting a revolver and a term loan A, the source said.
Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Jefferies LLC, RBC Capital Markets, TD Securities (USA) LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, ING, Mizuho, MUFG, Santander and U.S. Bank are the joint lead arrangers on the deal. Citigroup is the administrative agent.
Security is a perfected first priority lien on all of the equity interests of the borrower directly held by Holdings and substantially all tangible and intangible assets of the borrower and subsidiary guarantors, limited to 65% of the capital stock of first tier foreign subsidiaries and subject to other customary exceptions.
Proceeds will be used with senior secured notes, a senior secured bridge facility, a senior unsecured bridge facility, equity and cash from the balance sheet to fund the buyout of Tenneco by Apollo, refinance existing debt, and pay related fees and expenses.
Under the agreement, Tenneco is being purchased for $20.00 per share. The transaction has an enterprise valuation of about $7.1 billion, including debt.
Closing is expected in mid-November.
Tenneco is a Lake Forest, Ill.-based designer, manufacturer and marketer of automotive products for original equipment and aftermarket customers.
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