TRW Raises New Term Loans and Amends Its Primary Credit Facility; Completes Steps Resulting in Strengthened Capital Structure
December 22 2009 - 7:25AM
PR Newswire (US)
LIVONIA, Mich., Dec. 22 /PRNewswire-FirstCall/ -- TRW Automotive
Holdings Corp. (NYSE:TRW), the global leader in active and passive
safety systems, today announced it has raised $400 million of new
term loans of which $225 million matures on May 30, 2015 and $175
million matures on May 30, 2016, both subject to certain
conditions. Proceeds from the new $400 million term loans, together
with cash on hand were used to repay the outstanding balances of
previously existing term loans, which had earlier maturities than
the newly issued term loans. In addition, the Company has finalized
an agreement with lenders representing 70% of commitments to amend
and extend the revolving credit facility under its existing secured
credit agreement. Certain lenders participating in the Company's
revolving credit facility have agreed to extend the maturity of
their commitments under that facility to November 30, 2014 from May
9, 2012, subject to certain conditions. As a result, the Company
has $1,256 million of an undrawn revolving credit facility through
May 2012 and $845 million through November 2014. Each lender that
agreed to extend the maturity of its revolving commitment was
permitted to reduce its revolving commitment by up to 20 percent at
its election and received an upfront fee. Lenders under the
revolving credit facility not agreeing to the extension ($411
million of the previous $1,352 million of commitments) will
continue to hold their commitments through May, 2012. Detailed
information on the changes to the senior secured credit facilities
can be found in the Company's 8-K filing today. The new term loans
as well as the amendment of the Company's credit facility, which
includes the extension of its revolver, as described above, reflect
the completion of several steps taken during the second half of
2009 that, together with the Company's solid operating results,
have significantly improved the strength and flexibility of TRW's
capital structure. Key components implemented include: --
Completion of a public offering of 16.1 million shares of common
stock in August 2009 providing net proceeds of $269 million to the
Company. -- Completion of a $259 million, 3.50% exchangeable senior
notes offering and a $250 million 8.875% senior unsecured notes
offering, both in November 2009 providing combined net proceeds of
$493 million to the Company. -- Raised $400 million of new term
loans. Proceeds from this, together with cash on hand, were used to
pay off the Company's existing term loans. -- Amended the Company's
primary credit facility which included extending $845 million of
its revolver commitments to November 2014. Completion of the above
steps allowed TRW to reduce the overall debt level of the Company
by issuing incremental equity; substantially extend the maturities
of its debt structure; secure significant liquidity through the
extension of a portion of its currently undrawn revolving credit
facility resulting in $1,256 million of availability through May
2012 and $845 million through November 2014; and decrease the level
of secured senior debt, which provides the Company flexibility for
further secured borrowings if needed. "Completing the equity and
debt offerings, as well as amending our primary credit facility to
extend a substantial portion of our revolver, provides increased
flexibility to manage TRW's capital structure in support of the
Company's future growth," said John C. Plant, President and Chief
Executive Officer. "The Company is well positioned to take
advantage of the industry rebound given its strengthened balance
sheet." About TRW With 2008 sales of $15.0 billion, TRW Automotive
ranks among the world's leading automotive suppliers. Headquartered
in Livonia, Michigan, USA, the Company, through its subsidiaries,
operates in 26 countries and employs approximately 64,000 people
worldwide. TRW Automotive products include integrated vehicle
control and driver assist systems, braking systems, steering
systems, suspension systems, occupant safety systems (seat belts
and airbags), electronics, engine components, fastening systems and
aftermarket replacement parts and services. All references to "TRW
Automotive", "TRW" or the "Company" in this press release refer to
TRW Automotive Holdings Corp. and its subsidiaries, unless
otherwise indicated. Forward-Looking Statements This release
contains statements that are not statements of historical fact, but
instead are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. We caution
readers not to place undue reliance on these statements, which
speak only as of the date hereof. All forward-looking statements
are subject to numerous assumptions, risks and uncertainties which
can cause our actual results to differ materially from those
suggested by the forward-looking statements, including those set
forth in our Report on Form 10-K for the fiscal year ended December
31, 2008 (our "Form 10-K"), and in our Reports on Form 10-Q for the
quarters ended April 3, July 3 and October 2, 2009, such as: any
prolonged contraction in automotive sales and production adversely
affecting our results, liquidity or the viability of our supply
base; the financial condition of OEMs, particularly the Detroit
Three, adversely affecting us or the viability of our supply base;
disruptions in the financial markets adversely impacting the
availability and cost of credit negatively affecting our business;
our substantial debt and resulting vulnerability to economic or
industry downturns and to rising interest rates; escalating pricing
pressures from our customers; commodity inflationary pressures
adversely affecting our profitability and supply base; our
dependence on our largest customers; any impairment of a
significant amount of our goodwill or other intangible assets;
costs of product liability, warranty and recall claims and efforts
by customers to adversely alter contract terms and conditions
concerning warranty and recall participation; strengthening of the
U.S. dollar and other foreign currency exchange rate fluctuations
impacting our results; any increase in the expense and funding
requirements of our pension and other postretirement benefits;
risks associated with non-U.S. operations, including foreign
exchange risks and economic uncertainty in some regions; work
stoppages or other labor issues at our facilities or at the
facilities of our customers or suppliers; volatility in our annual
effective tax rate resulting from a change in earnings mix or other
factors; costs or liabilities relating to environmental, health and
safety regulations; assertions by or against us relating to
intellectual property rights; the possibility that our largest
stockholder's interests will conflict with our or our other
stockholders' interests; and other risks and uncertainties set
forth in our Form 10-K and in our other filings with the Securities
and Exchange Commission. We do not undertake any obligation to
release publicly any update or revision to any of the
forward-looking statements. DATASOURCE: TRW Automotive Holdings
Corp. CONTACT: Investor Relations, Mark Oswald, +1-734-855-3140, or
Media, John Wilkerson, +1-734-855-3864, both of TRW Web Site:
http://www.trwauto.com/ Company News On-Call:
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