Southfield, Michigan, April 3, 2017... Federal-Mogul LLC ("Federal-Mogul" or the "Company") today announced it has successfully completed a €715 million senior secured notes offering and refinanced a portion of its existing debt. The Company (together with Federal-Mogul Financing Corporation, the co-issuer of the notes) issued an aggregate principal amount of €415 million 4.875% Senior Secured Notes due 2022 and €300 million Floating Rate Senior Secured Notes due 2024 that will bear interest at a rate of EURIBOR (with a 0% floor), plus 4.875% per annum. The proceeds of the notes were used to prepay in full Federal-Mogul's term loan B which was scheduled to mature in 2018, reduce its revolving credit facility balance and to pay related fees and expenses. This transaction extends the average maturity of the Company's debt at competitive interest rates, including some favorable fixed rate debt, in a currency in which the Company has significant investments, while strengthening the Company's overall liquidity and financial profile in support of its long-term business objectives.
The notes were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Statements contained in this press release which are not historical fact constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Federal-Mogul's most recent report to the SEC on Form 10-K and include, but are not limited to, the Company's ability to successfully integrate and achieve the anticipated synergies from recent acquisitions, fluctuations in domestic or foreign vehicle production, fluctuations in the demand for vehicles containing our products, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and corresponding effects and general global and regional economic conditions. Federal-Mogul does not intend or assume any obligation to update any forward-looking statements.
Federal-Mogul LLC is a leading global supplier of products and services to the world's manufacturers and servicers of vehicles and equipment in the automotive, light, medium and heavy-duty commercial, marine, rail, aerospace, power generation and industrial markets. The Company's products and services enable improved fuel economy, reduced emissions and enhanced vehicle safety.
Federal-Mogul operates two independent business divisions, each with a chief executive officer reporting to Federal-Mogul's Board of Directors.
Federal-Mogul Powertrain designs and manufactures original equipment powertrain components and systems protection products for automotive, heavy-duty, industrial and transport applications.
Federal-Mogul Motorparts sells and distributes a broad portfolio of products through more than 20 of the world's most recognized brands in the global vehicle aftermarket, while also serving original equipment vehicle manufacturers with products including braking, wipers and a range of chassis components. The Company's aftermarket brands include ANCO® wipers; Beck/Arnley® premium OE quality parts and fluids; BERU®* ignition systems; Champion® lighting, spark plugs, wipers and filters; Interfil® filters; AE®, Fel-Pro®, FP Diesel®, Goetze®, Glyco®, Nüral®, Payen® and Sealed Power® engine products; MOOG® chassis components; and Ferodo®, Jurid® and Wagner® brake products and lighting.
Federal-Mogul was founded in Detroit in 1899 and maintains its worldwide headquarters in Southfield, Michigan. The Company has nearly 53,000 employees globally. For more information, please visit www.federalmogul.com
*BERU is a registered trademark of BorgWarner Ludwigsburg GmbH
Debt Relations Media
Jim Zabriskie Susan Fisher
Federal-Mogul LLC Federal-Mogul LLC
+1 (248) 354-8673 +1 (248) 354-0926