SOUTHFIELD, Mich. – Federal-Mogul Holdings Corp. announced it has successfully secured $2.6 billion to refinance existing debt.
The new holding company entered into an amendment to Federal-Mogul Corp.’s existing term loan and revolving credit agreement that, among other things, provides for a new term loan facility of $700 million due April 2018 and a new term loan facility of $1.9 billion due April 2021. The proceeds of the new term loans will be used to repay term loans outstanding under the existing credit agreement. In addition, under the amendment to the existing credit agreement, Federal-Mogul Holdings Corp. will assume all of the rights and obligations of Federal-Mogul Corp. under its existing $550 million revolving credit facility.
"We are pleased with this transaction as it positions the company favorably for the future by extending loan maturity dates at competitive interest rates and strengthens the liquidity and financial profile of the company," said Rajesh Shah, senior vice president and CFO for Federal-Mogul Holdings Corp.
Earlier this week, the company announced that Federal-Mogul Corp. became a direct, wholly-owned operating subsidiary of a new public holding company, Federal-Mogul Holdings Corp.
