LAKE FOREST, Ill. – Tenneco Inc. announced it has received the requisite tenders and consents from holders of its outstanding $225 million 7 ¾ percent Senior Notes due 2018 to amend the indenture governing such notes. Tenneco also completed its previously announced public offering of $225 million 5 3/8 percent Senior Notes due 2024, the proceeds of which will be used to purchase the 2018 notes.
On Nov. 20, Tenneco commenced a cash tender offer for any and all of the 2018 Notes and a solicitation of consents to certain proposed amendments to the indenture governing the 2018 Notes. The deadline for tendering 2018 Notes to be eligible to receive a consent payment in connection with the consent solicitation was 5 p.m. on Dec. 4. As of the consent payment deadline, Tenneco had received tenders and consents representing $180,755,000 in aggregate principal amount of the outstanding 2018 Notes.
The consents received exceeded the minimum needed to amend the indenture governing the 2018 Notes. Accordingly, Tenneco, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee, have executed a supplemental indenture that eliminates substantially all of the restrictive covenants and certain event of default provisions in the indenture governing the 2018 Notes and reduces the minimum notice period required to effect a call for redemption from 30 to 5 days.
Tenneco will make a cash payment of $1,043.50 per $1,000 principal amount, which includes a consent payment of $30 per $1,000 principal amount, plus accrued and unpaid interest, to the holders of 2018 Notes who tendered prior to the consent payment deadline. The initial settlement is expected to occur today.
