Dana Launches €325 Million Senior Notes Offering

Rhea-AI Summary

Dana is proposing to issue €325 million in senior unsecured notes due 2029 through its subsidiary, Dana Financing Luxembourg S.à r.l. The 2029 Notes aim to refinance existing debt by redeeming the 6.500% Senior Notes due 2026 at a price of 103.250% plus accrued interest. The offering will only be available to qualified institutional buyers and non-U.S. investors, exempt from U.S. registration requirements. Dana's commitment to efficient energy solutions continues, having reported $7.1 billion in sales for 2020.

Positive

• Proceeds from the 2029 Notes will be used to redeem higher-interest-bearing 2026 Notes, potentially reducing interest expenses.
• Dana reported $7.1 billion in sales for 2020, indicating robust revenue.

Negative

• The redemption of the 2026 Notes suggests existing debt levels may be high, requiring refinancing.
• The offering is limited to qualified institutional buyers, which may restrict broader investment opportunities.

MAUMEE, Ohio, May 11, 2021 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) ("Dana") today announced that its wholly-owned subsidiary, Dana Financing Luxembourg S.à r.l., is proposing to issue €325 million aggregate principal amount of senior unsecured notes due 2029 (the "2029 Notes") in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The 2029 Notes will be fully and unconditionally guaranteed by Dana. Additionally, Dana today issued a conditional notice of redemption for any and all outstanding 6.500% Senior Notes due 2026 (the "2026 Notes") at a redemption price of 103.250% of the principal amount thereof, plus accrued and unpaid interest. Dana intends to use the net proceeds from the offering of the 2029 Notes, together with cash on hand, to (i) redeem all of Dana's outstanding 2026 Notes and (ii) pay related fees and expenses.

The 2029 Notes are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States, only to non-U.S. investors in reliance on Regulation S under the Securities Act.  The 2029 Notes initially will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

This document is for distribution only to persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). This document is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons.  Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons.

Manufacturer target market (MIFID II and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK.

Forward-Looking Statements
Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including with respect to the use of proceeds, are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," and similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition. The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.

About Dana Incorporated
Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions for all mobility markets across the globe. The company's conventional and clean-energy solutions support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.

Based in Maumee, Ohio, USA, the company reported sales of $7.1 billion in 2020 with 38,000 associates in 33 countries across six continents. Founded in 1904, Dana was named one of "America's Most Responsible Companies 2021" by Newsweek for its emphasis on sustainability and social responsibility. The company is driven by a high-performance culture that focuses on its people, which has earned it global recognition as a top employer, including "World's Best Employer" from Forbes magazine.

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SOURCE Dana Incorporated

FAQ

What is Dana's recent bond offering about?

Dana is offering €325 million in senior unsecured notes due 2029 to refinance existing debt.

What will Dana do with the proceeds from the bond offering?

The proceeds will be used to redeem existing 6.500% Senior Notes due 2026 and cover related expenses.

Who can purchase the new notes issued by Dana?

The notes are being offered only to qualified institutional buyers and non-U.S. investors.

What were Dana's sales figures for 2020?

Dana reported sales of $7.1 billion in 2020.

What is the redemption price for Dana's 2026 Notes?

The redemption price for the 2026 Notes is 103.250% of the principal amount plus accrued interest.