Dana Unveils Senior Notes Offering of $375 Million

Dana Holding Corporation

revealed that its fully-owned subsidiary, Dana Financing Luxembourg, is planned to issue $375 million aggregate principal amount of senior unsecured notes due 2026 through a private offering. According to the company, the 2026 Notes would be fully and unconditionally guaranteed by Dana. Dana Holding said that its unit also issued a notice of redemption in respect of all of its outstanding 6.750 percent Notes due 2021. The company indicated that the redemption is conditioned on the closing of the planned offering. The company plans to use the proceeds from the 2026 Notes offering to redeem all of its 2021 Notes, to pay related fees and expenses and for general corporate purposes, which may include repayment of indebtedness. The company said that its 2026 Notes were being offered only to qualified institutional buyers in respect of 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. Dana Holding also revealed that it received commitments from lenders for a new cash flow revolving credit facility with a five-year term and availability in an aggregate amount of $500 million. On Tuesday, the stock traded 1.28 percent higher.