LAKE FOREST, Ill., May 6,
2020 /PRNewswire/ -- Tenneco (NYSE: TEN) announced
today that its senior lenders have agreed to amend the financial
covenant ratios of its senior secured credit facility,
significantly increasing the maximum leverage ratio and decreasing
the minimum interest coverage ratio requirements in the company's
senior credit facility. The revised covenant amendments are
expected to help the company manage through the anticipated
temporary drop in revenue and earnings related to the COVID-19
pandemic while maintaining compliance with senior credit facility
terms.
The company sought the amendments in response to the COVID-19
pandemic and the challenging macroeconomic environment and
difficult industry conditions that have decreased automotive
production volumes globally. These changes are effective beginning
with second quarter 2020 and continue through fourth quarter 2022.
More detailed information on the ratio adjustments,
pricing and additional changes to the senior secured credit
facility can be found in the company's 8-K filing today.
About Tenneco
Headquartered in Lake Forest, Illinois, Tenneco is one of the
world's leading designers, manufacturers and marketers of
Aftermarket, Ride Performance, Clean Air and Powertrain products
and technology solutions for diversified markets, including light
vehicle, commercial truck, off-highway, industrial and the
aftermarket, with 2019 revenues of $17.45
billion and approximately 78,000 employees worldwide. On
October 1, 2018, Tenneco completed
the acquisition of Federal-Mogul, a leading global supplier to
original equipment manufacturers and the aftermarket. In the
future, the company expects to separate its divisions to form two
new, independent companies: DRiV, an Aftermarket and Ride
Performance company, and New Tenneco, a Powertrain Technology
company.
Safe Harbor
This release contains forward-looking
statements. These forward-looking statements include, among others,
statements relating to our planned responses to the unprecedented
circumstances brought on by the COVID-19 virus and to our plans to
separate into two independent companies. Forward-looking statements
are subject to a number of risks and uncertainties that could cause
actual results to materially differ from those described in the
forward-looking statements, including the course of the COVID-19
pandemic and its impact on general economic, business and market
conditions, our ability (or inability) to execute on our plans to
respond to the COVID-19 pandemic and our previously announced
Accelerate plan and to realize the anticipated benefits of these
actions, our financial flexibility in addressing the impact of the
COVID-19 pandemic, our ability to maintain compliance with the
agreements governing our indebtedness and otherwise have sufficient
liquidity through the COVID-19 pandemic, the possibility that
Tenneco may not complete the separation of the Aftermarket &
Ride Performance business from the Powertrain Technology business
(or achieve some or all of the anticipated benefits of such a
separation); the possibility that the separation may have an
adverse impact on existing arrangements with Tenneco, including
those related to transition, manufacturing and supply services and
tax matters; the ability to retain and hire key personnel and
maintain relationships with customers, suppliers or other business
partners; the risk that the benefits of the separation may not be
fully realized or may take longer to realize than expected; the
risk that the separation may not advance Tenneco's business
strategy; the potential diversion of Tenneco management's attention
resulting from the separation; as well as the risk factors and
cautionary statements included in Tenneco's periodic and current
reports (Forms 10-K, 10-Q and 8-K) filed from time to time with the
SEC.
Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. Unless otherwise indicated, the forward-looking
statements in this release are made as of the date of this
communication, and, except as required by law, Tenneco does not
undertake any obligation, and disclaims any obligation, to publicly
disclose revisions or updates to any forward-looking statements.
Additional information regarding these risk factors and
uncertainties is detailed from time to time in the company's SEC
filings, including but not limited to its annual report on Form
10-K for the year ended December 31,
2019.
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.