Dana wraps early tenders for 5 3/8% notes, lifts cap to $100 million

By Susanna Moon

Chicago, April 4 – Dana Inc. said investors had tendered $170,728,000 of its 5 3/8% senior notes due 2021 as of 5 p.m. ET on April 3, the early tender date.

Dana increased the tender cap to $100 million and accepted the early tendered notes using a proration factor of about 58.637%, with settlement set for Tuesday, according to a company update.

The company began tendering for up to $75 million of the notes on March 21 and had planned to run the offer until midnight ET at the end of April 17.

Because the offer has been oversubscribed, however, no notes tendered after the early deadline will be accepted for purchase unless the company decides to further increase the tender cap, the release noted.

The total purchase price will be $1,040.31 per $1,000 principal amount of notes tendered by the early deadline.

The total payment includes an early tender premium of $30 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

The tender offer was contingent on the company securing financing with enough proceeds to fund the notes purchase.

As reported, Dana priced $400 million of eight-year senior notes at par to yield 5¾% on March 21.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager. D.F. King & Co., Inc. (866 745-0268, 212 269-5550 or dan@dfking.com) is the tender and information agent.

Dana, formerly Dana Holding Corp., is a supplier of driveline, sealing and thermal-management technologies for passenger, commercial and off-highway vehicles. The company is based in Maumee, Ohio.

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