Dana Inc. has announced an amendment to its existing senior secured credit facility, which includes an amended and extended revolving credit facility that increases the aggregate amount available from $750 million to $1 billion and extends the maturity to 2024. The amendment also extends the maturity of Dana’s existing “Term Loan A” tranche by two years to 2024.
As a result of the amendment, pricing of both the revolving facility and “Term Loan A” were reduced by 25 basis points.
“We are quite pleased with this amendment, as it affords the company increased liquidity matching the growth our business has achieved over the last few years while lowering overall borrowing costs,” Jonathan Collins, Dana’s executive vice president and CFO, said in an announcement dated Sept. 4. “We expect strong free cash flow generation of approximately $2 billion over the next five years, which will further enhance our already strong balance sheet as we move toward our long-term leverage target.”
Citi was administrative agent, joint lead arranger and joint bookrunner for the transaction.