Tenneco Announces Conditional Redemption of 5.000% Senior Secured Notes due 2024 and Floating Rate Senior Secured Notes due 2024
Tenneco Inc. (NYSE: TEN) announced plans to redeem its outstanding 5.000% Senior Secured Notes and Floating Rate Senior Secured Notes due 2024 on April 2, 2021. The 2024 Secured Notes totaling €350 million will be redeemed at 102.500% of the principal amount, totaling €1,035.6944 per €1,000. The 2024 FR Secured Notes amounting to €300 million will be redeemed at 100.000%, totaling €1,010.4271 per €1,000. The redemption is contingent upon completing a new notes offering due in 2029.
- The company's decision to redeem secured notes may strengthen its balance sheet.
- The redemption prices offer premium returns to noteholders.
- The redemption is subject to the successful completion of a new notes offering, adding uncertainty.
- Potential risks if the financing condition is not satisfied, which could lead to rescinding the redemption notice.
LAKE FOREST, Ill., March 3, 2021 /PRNewswire/ -- Tenneco Inc. (NYSE: TEN) ("Tenneco") today announced that it has given notice of its intention to redeem all of its outstanding
The aggregate principal amount outstanding of the 2024 Secured Notes is
The aggregate principal amount outstanding of the 2024 FR Secured Notes is
The Notes are currently listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on the Euro MTF Market.
Tenneco intends to fund the redemption of the Notes with proceeds from its previously announced offering of senior secured notes due 2029 (the "New Notes Offering"), together with cash on hand. Tenneco's obligation to redeem each series of Notes is subject to the completion of the closing of the New Notes Offering (the "Financing Condition"). Accordingly, the Redemption Date for each series of Notes may be extended until the Financing Condition is satisfied or waived by Tenneco in its sole discretion. If the Financing Condition is not satisfied, Tenneco may elect to rescind the notice of redemption for any series of Notes, terminate the redemption for any series of Notes and return any tendered Notes of such series to the holders thereof. If the Redemption Date for any series of Notes is extended or the redemption is terminated, Tenneco will provide notice to noteholders of such series of Notes no later than 5:00 p.m. New York time on the business day immediately preceding the Redemption Date. Unless Tenneco defaults in paying the redemption price in full for the respective series of Notes on the Redemption Date and assuming the applicable notice of redemption is not rescinded, interest on such series of Notes shall cease to accrue on and after the Redemption Date, and the only remaining right of the Noteholders of such series of Notes will be to receive payment of the applicable redemption price upon surrender of their Notes.
Payment of the redemption price for each series of Notes will be made in accordance with the applicable procedures of Euroclear Bank S.A. / N.V. and Clearstream Banking, S.A.
The Bank of New York Mellon, London Branch is serving as trustee and paying agent, and The Bank of New York Mellon (Luxembourg) S.A., is acting as registrar, for the 2024 Secured Notes.
Wilmington Trust, National Association is serving as the trustee, The Bank of New York Mellon, London Branch is serving as paying agent, and The Bank of New York Mellon (Luxembourg) S.A., is acting as registrar, for the 2024 FR Secured Notes.
This press release is for information purposes only and shall not constitute the official notice of redemption for each series of Notes required under the respective indenture governing such series of Notes, which notice shall be provided by the Paying Agent on behalf of Tenneco.
About Tenneco
Tenneco is one of the world's leading designers, manufacturers and marketers of automotive products for original equipment and aftermarket customers, with 2020 revenues of
Investor inquiries
Linae Golla
847 482-5162
lgolla@tenneco.com
Rich Kwas
248 849-1340
rich.kwas@tenneco.com
Media inquiries
Bill Dawson
847 482-5807
bdawson@tenneco.com
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SOURCE Tenneco Inc.
FAQ
What is Tenneco's plan for the 5.000% Senior Secured Notes due 2024?
What is the redemption price for Tenneco's 2024 Secured Notes?
What will Tenneco pay for the Floating Rate Senior Secured Notes due 2024?
What conditions must Tenneco meet to redeem these notes?
What happens if Tenneco does not meet the financing condition for the note redemption?
