Tenneco Automotive Files Registration Statement for Common Stock Offering

Tenneco Automotive has filed a registration statement with the Securities and Exchange Commission for a proposed public offering of approximately $150 million, or approximately 11.8 million shares, of its common stock. The public offering is part of the company's plan to reduce leverage and annual interest expense. The plan also includes an anticipated private placement of approximately $400 million principal amount of new senior subordinated notes.

LAKE FOREST, IL — Tenneco Automotive has filed a registration statement with the Securities and Exchange Commission for a proposed public offering of approximately $150 million, or approximately 11.8 million shares, of its common stock.

The public offering is part of the company’s plan to reduce leverage and annual interest expense. The plan also includes an anticipated private placement of approximately $400 million principal amount of new senior subordinated notes.

The company said it intends to grant its underwriters an option to purchase additional shares from the company to cover over allotments in an amount up to approximately $22.5 million, or approximately 1.8 million, of its shares.

Tenneco Automotive plans to use the net proceeds of the offering and the private placement to make and complete an offer to purchase for cash the company’s outstanding $500 million of 11 5/8 percent senior subordinated notes due 2009.

The company expects to incur pre-tax charges of approximately $55 million in the second quarter related to these transactions, which will be recorded as an interest expense.

For more information about Tenneco, go to: http://www.tenneco-automotive.com.

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