From Detroit Free Press
LAKE FOREST, IL — Tenneco Automotive canceled its planned sale of $420 million of high-yield, high-risk notes Thursday, joining Revlon Inc., Samsonite Corp. and others in pulling new bond issues as borrowing costs soar.
With Lake Forest, Ill.-based Tenneco, at least 14 junk-rated companies globally have canceled $4.4 billion in debt sales since May 7, when the government reported a surge in monthly jobs growth and bond yields accelerated their climb from a mid-March low.
Tenneco, the world’s biggest maker of vehicle shock absorbers, has been trying to reduce its annual interest costs as part of a turnaround. Last year it posted a $27-million profit, its first net income since 1998.
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