Dana Inc. announced that its wholly-owned subsidiary, Dana Financing Luxembourg S.à r.l., is proposing to issue $400 million aggregate principal amount of senior unsecured notes due 2025 in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended. The 2025 Notes will be fully and unconditionally guaranteed by Dana.
Dana intends to use the net proceeds from the offering of the 2025 Notes to repay approximately $180 million of indebtedness of Dana’s subsidiaries Brevini Power Transmission S.p.A., Brevini Fluid Power S.p.A. and certain of their subsidiaries, as well as to repay approximately $113 million of indebtedness of a Brazilian subsidiary of Dana and to purchase in a tender offer up to $75 million aggregate principal amount of its outstanding 5.375 percent Senior Notes due 2021. In addition, the proceeds would be used to pay related fees and expenses and for general corporate purposes, which may include repayment of indebtedness.
The 2025 Notes are being offered only to qualified institutional buyers in reliance on 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.
