Published on 3/3/2021 in the Prospect News High Yield Daily.
New Issue: Tenneco prices $800 million 5 1/8% eight-year senior notes at par to yield 5.124%
By Paul A. Harris
Portland, Ore., March 3 – Tenneco Inc. priced an $800 million issue of 5 1/8% eight-year senior notes (Ba3/B-/BB-) at par to yield 5.124% in a Wednesday drive-by, according to market sources.
The yield printed in the middle of the 5% to 5¼% yield talk, which was also the initial guidance.
Barclays was the lead bookrunner. Joint bookrunners were BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities LLC.
The Lake Forest, Ill.-based automotive components supplier plans to use the proceeds to refinance the Federal-Mogul senior secured notes due 2024.
Tenneco acquired Federal-Mogul in 2018.
| Issuer: | Tenneco Inc.
|
| Amount: | $800 million
|
| Maturity: | April 15, 2029
|
| Securities: | Senior notes
|
| Lead bookrunner: | Barclays
|
| Joint bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities LLC
|
| Co-managers: | Truist Securities Inc., SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., Capital One Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., Commerz Markets LLC, Fifth Third Securities Inc., ING Financial Markets LLC, KBC Securities USA LLC, Mizuho Securities USA Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Santander Investment Securities Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Coupon: | 5 1/8%
|
| Price: | Par
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| Yield: | 5.124%
|
| Spread: | 384 bps
|
| Call protection: | Three years
|
| Trade date: | March 3
|
| Settlement date: | March 17
|
| Ratings: | Moody's: Ba3
|
| S&P: B-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% to 5¼%
|
| Marketing: | Drive-by
|
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