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Affinia launches loan amendment to allow for global chassis sale
By Sara Rosenberg
New York, Jan. 27 - Affinia Group Inc. launched on Monday an amendment to its senior secured credit facility that will permit the $150 million sale of its global chassis division to Federal-Mogul Corp., according to an 8-K filed with the Securities and Exchange Commission.
The amendment will also add a basket for restricted payments and a basket for investments to permit up to $85 million of dividends, loans or advances to Affinia Group Holdings Inc. for the purpose of repaying outstanding amounts under an existing seller note.
Furthermore, the excess cash flow sweep payment will be deferred for six months from the current due date.
Also, the amendment will extend the period during which the company may use proceeds from the sale of its South America business to make loans and advances and to pay dividends to April 25, 2015 from Oct. 25, 2014.
Approval of the amendment is subject to consents from a majority of term loan and ABL lenders.
Term loan lenders are being offered a 15 basis point consent fee, and ABL lenders are being offered a 7.5 bps consent fee.
Also, with the amendment, the company will prepay $75 million of term loan B-1 and B-2 debt on a pro rata basis.
Consents are due on Feb. 3.
Affinia is an Ann Arbor, Mich.-based designer, manufacturer, distributor and marketer of industrial-grade products and services.
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