TOLEDO, Ohio, Nov. 27 /PRNewswire-FirstCall/ -- Dana Corporation
announced today that it has obtained fully underwritten commitments for a
$2.0 billion exit financing facility, marking a significant step toward the
company's timely emergence from Chapter 11 reorganization. These
commitments ensure that Dana will be positioned to emerge from bankruptcy
by the end of January 2008, or earlier.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
The exit facility will be underwritten by Citigroup Global Markets
Inc., Lehman Brothers Inc., and Barclays Capital, and will consist of a
$650 million asset-based revolving credit facility and a $1,350 million
term loan facility. The facilities are secured by substantially all of the
assets of Dana and most of its domestic subsidiaries.
Dana Chairman and Chief Executive Officer Mike Burns said, "This is a
significant step toward our emergence as a strong, financially stable
company that is equipped to make significant investments in our programs
and to continue providing innovative products of the highest quality to our
customers worldwide. The fact that our exit facility is fully underwritten
during difficult credit market conditions is a strong endorsement of our
proposed capital structure and success in implementing our turnaround
initiatives. In addition, it further ensures our timely emergence from
Chapter 11 after confirmation of our plan of reorganization by the
bankruptcy court."
Proceeds from the facility will be used by Dana to repay its debtor-in-
possession credit facility, make other payments required upon exit from
bankruptcy, and provide liquidity to fund working capital and other general
corporate purposes.
The commitment letter remains subject to bankruptcy court approval and
the funding of the commitments set forth in the commitment letter is
subject to customary closing conditions.
Dana was advised by Miller Buckfire & Co., AlixPartners, and Jones Day
in connection with its exit financing process.
About Dana Corporation
Dana is a world leader in the supply of axles; driveshafts; and
structural, sealing, and thermal management products; as well as genuine
service parts. The company's customer base includes virtually every major
vehicle and engine manufacturer in the global automotive, commercial
vehicle, and off-highway markets, which collectively produce more than 65
million vehicles annually. Based in Toledo, Ohio, the company's continuing
operations employ approximately 36,000 people in 25 countries and reported
2006 sales of $8.5 billion, with more than half of this revenue derived
from outside the United States. For more information, please visit:
http://www.dana.com/ .
Forward-Looking Statements
Certain statements and projections contained in this news release are,
by their nature, forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
and projections are subject to uncertainties relating to the successful
emergence of the company from bankruptcy and consummation of the financing
transactions contemplated by the exit financing commitments, and a number
of other risks, uncertainties and assumptions (including, but not limited
to, the debtors' operations and business environment, the effects of the
debtors' Chapter 11 reorganization and the conduct, outcome, and costs of
the Chapter 11 cases), which are difficult to predict and which are, in
many cases, beyond the debtors' control. In light of these risks and
uncertainties, the events and circumstances described in the
forward-looking statements and projections in the news release may not
occur and the debtors' actual financial results could differ materially
from those expressed or implied in such forward-looking statements and
projections. Dana does not undertake to publicly update or revise any
forward-looking statements or projections contained in the news release,
whether as a result of new information, future events, or otherwise.
SOURCE Dana Corporation
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Related links:
http://www.dana.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/226839.html /
CONTACT:
Chuck Hartlage of Dana Corporation,
+1-419-535-4728
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