Published:
Dana Holding Corporation Secures Amended Credit Facility; Agreement Provides for Strategic Flexibility
TOLEDO, Ohio, Nov. 21 /PRNewswire-FirstCall/ -- Dana Holding Corporation
(NYSE: DAN) announced today that it has received the requisite support of its
lenders to amend the financial covenants for its $1.3 billion senior secured
term credit facility.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
The amendment improves the ratios permissible for leverage and interest
coverage. This covers the company's financial covenants for each fiscal
quarter through 2012. The financial covenants in the term credit facility are
calculated and determined at the end of each quarter. Dana anticipates being
in compliance with the amended covenants as of December 31, 2008.
Dana also received permission to dispose of certain non-core businesses
and issue additional debt outsidethe United States. These amendments will
provide Dana with greater flexibility as it considers strategic options and
implements its restructuring plans.
In connection with the amendment of its term credit facility, Dana has
agreed to pay an amendment fee and increase the annual base interest rate by
50 basis points per annum and will repay $150 million of outstanding principal
under the term credit facility.
As of October 31, 2008, the company had approximately $1 billion in
unrestricted cash.
"As we reported during our recent third-quarter earnings announcement,
tumultuous industry conditions and our resulting outlook for the balance of
the year suggested that the renegotiation of our loan covenants was prudent,"
said Dana Executive Vice President and Chief Financial Officer Jim Yost.
"These modifications position us to be in compliance with our key financial
covenants going forward and provide the flexibility needed to achieve our
strategic imperatives."
About Dana Holding Corporation
Dana is a world leader in the supply of axles; driveshafts; and
structural, sealing, and thermal-management products; as well as genuine
service parts. The company's customer base includes virtually every major
vehicle manufacturer in the global automotive, commercial vehicle, and off-
highway markets, which collectively produce approximately 70 million vehicles
annually. Based inToledo, Ohio, the company's continuing operations employ
approximately 32,000 people in 26 countries and reported 2007 sales of $8.7
billion. For more information, please visit: www.dana.com.
SOURCE Dana Holding Corporation
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