LAKE FOREST, Ill., Feb. 18,
2020 /PRNewswire/ -- Tenneco Inc. (NYSE: TEN) today
announced that it has reached an agreement with its senior
lenders to amend the leverage covenant ratio of its senior credit
facility, which increases the Company's maximum net leverage
ratio to 4.50 through the first quarter of 2021. Moving forward,
the covenant decreases gradually until 3.50 is reached by the
fourth quarter of 2022.
"We are pleased to have reached this agreement with our lenders,
as the amendment enhances our financial flexibility to respond to
challenging market conditions, execute our strategy, and ensure
continued compliance with our covenants," said Jason Hollar, executive vice president and chief
financial officer of Tenneco. "Lowering our leverage profile and
improving our balance sheet remain among our top priorities. We
have a disciplined focus on cost reductions and cash flow
improvements, in order to position both our business divisions for
a successful planned separation."
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 2018 pro forma revenue of $17.8 billion and approximately 81,000 employees
worldwide. On October 1, 2018,
Tenneco completed the acquisition of Federal-Mogul, a leading
global supplier to original equipment manufacturers and the
aftermarket. Additionally, the company expects to separate its
businesses to form two new, independent companies, an Aftermarket
and Ride Performance company as well as a new Powertrain Technology
company.
Safe Harbor
This release contains forward-looking
statements. These forward-looking statements include, among others,
statements relating to our strategies and 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 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 Tenneco will be unable to execute
on its strategy and maintain compliance with the covenants in its
Credit Agreement; 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,
2018 and Form 10-Q for the quarter ended September 30, 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.