New Issue: Tenneco upsizes 10-year notes to $350 million, yield 10¼%

By Paul A. Harris

St. Louis, June 10 - Tenneco Automotive, Inc. priced an upsized offering of $350 million of senior secured second lien notes due July 15, 2013 (B2/CCC+/B) at par Tuesday to yield 10¼%, according to a syndicate source.

The deal was increased from $300 million. Price talk was 10¼%-10½%.

JP Morgan, Morgan Stanley and Banc of America Securities were joint bookrunners for the Rule 144A deal. The co-managers were Citigroup, Credit Suisse First Boston, Deutsche Bank Securities, BNY, Comerica, Commerzbank, Scotia Capital, SG Cowen and TD Securities.

Proceeds will be used to prepay certain term loans and the revolver.

The issuer is an automotive parts supplier based in Lake Forest, Ill.

Issuer:	Tenneco Automotive, Inc.
Amount:	$350 million (increased from $300 million)
Maturity:	July 15, 2013
Security description:	Senior secured second lien notes
Bookrunners:	JP Morgan, Morgan Stanley, Banc of America Securities
Coupon:	10¼%
Price:	Par
Yield:	10¼%
Call features:	Callable on July 15, 2008 at 105.125, 103.417, 101.708, declining to par on July 15, 2011 and thereafter
Equity clawback:	Until July 15, 2006 for 35% at 110.25
Settlement date:	June 19, 2003
Ratings:	Moody's: B2
	Standard & Poor's: CCC+
	Fitch: B
Price talk:	10¼%-10½%

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