Dana completes private placement, tender offer

Dec 28, 2004 4:19 PM

Dana Corporation completed a $450 million private placement from which it will make a pension fund contribution of approximately $200 million. Most of the remainder, along with cash from the sale of the company’s automotive aftermarket business, was used to purchase outstanding debt. Holders of approximately $891 million in aggregate principal amount of notes ($250 million of 10-1/8% Notes due 2010, €200 million of 9% EUR Notes due 2011 and $575 million of 9% USD Notes due 2011) responded to Dana’s tender offer. Of the total, some $835 million was tendered prior to an early December deadline.

“We are extremely pleased with the success of both our notes offering and the results, to date, of the tender,” said Dana Chief Financial Officer Bob Richter. “These transactions, in combination with the recent divestiture of our aftermarket business, position Dana well for the future by enhancing our strategic focus and strengthening our balance sheet.”

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