Attached files
file | filename |
---|---|
8-K - FORM 8-K - DANA INC | l41699e8vk.htm |
EX-1.1 - EX-1.1 - DANA INC | l41699exv1w1.htm |
EX-5.1 - EX-5.1 - DANA INC | l41699exv5w1.htm |
Exhibit 99.1
Dana Holding Corporation Reduces Debt and
Refinances Secured Term Loan with $750 million in Senior Unsecured Notes;
Receives Commitment for a New Five-year $500 million Revolving Credit Facility;
Receives Upgraded Credit Rating of BB- from Standard & Poors
Refinances Secured Term Loan with $750 million in Senior Unsecured Notes;
Receives Commitment for a New Five-year $500 million Revolving Credit Facility;
Receives Upgraded Credit Rating of BB- from Standard & Poors
MAUMEE, Ohio January 28, 2011 Dana Holding Corporation (NYSE: DAN) today announced that it
has completed the refinancing of its capital structure. Dana has paid down debt and replaced its
secured term loan with $750 million in senior unsecured notes in a registered notes offering. Dana
has also received lender commitments for a new $500 million revolving credit facility with a
five-year maturity. Additionally, Standard & Poors upgraded Danas credit rating to BB- earlier
in the week reflecting an improved credit profile.
Due to the strong demand, Dana upsized the initial offering of $700 million and placed $750 million
in senior notes, $400 million at 6.5 percent due in 2019 and $350 million at 6.75 percent due 2021.
Dana continues the positive momentum of delivering results and strengthening its capital structure
with this latest action. The company also voluntarily contributed $50 million to its U.S. pension
plans in December 2010.
Over the last two years, Dana has restructured its operations, lowered its break-even point by
approximately 35 percent, and improved operating results. The company plans to continue to deliver
strong margins and positive cash flow through:
4 | Sustaining its tenacity in operational improvements, | ||
4 | Growing the business with projected 50 percent growth over the next five years, and | ||
4 | Further improving margins and maintaining a strong balance sheet. |
We are very pleased with the results and progress made over the past several years, said Dana
Chief Financial Officer and Executive Vice President Jim Yost. We have been able to capitalize on
our improved credit ratings, operational performance, and our strong financial position to
successfully recapitalize the business. The market response to Danas offering was tremendous.
Through this refinancing, Dana significantly extends debt maturity, reduces ongoing interest cost,
increases financial flexibility for growth, and diversifies the lender base. The refinancing
largely eliminates secured debt from the capital structure and reduces leverage.
Citigroup Global Markets Inc.; Wells Fargo Securities, LLC; Merrill Lynch, Pierce, Fenner & Smith
Incorporated; Barclays Capital Inc.; Deutsche Bank Securities Inc.; ING
Financial Markets LLC; and UBS Securities LLC acted as joint-bookrunners of the offering.
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.
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 are based on our current expectations, estimates and projections about
our industry and business, managements 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, 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.
Danas 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 Holding Corporation
Dana is a world leader in the supply of driveline products (axles and driveshafts), power
technologies (sealing and thermal-management products), and genuine service parts for light and
heavy manufacturers. The companys customer base includes virtually every major vehicle
manufacturer in the global automotive, commercial vehicle, and off-highway markets. Based in
Maumee, Ohio, the company employs some 22,500 people in 26 countries and has projected 2010 sales
of approximately $6.1 billion. For more information, please visit: www.dana.com.
Financial Contact |
||
Lillian Etzkorn:
|
(419) 887-5160 | |
Media Contact |
||
Chuck Hartlage:
|
(419) 887-5123 |
# # #
2