Citibank, Barclays, BMO Capital Markets, BofA Securities, Credit Suisse, Goldman Sachs, JP Morgan Chase and RBC Capital Markets acted as joint lead arrangers and joint bookrunners on a new $500 million bridge credit facility and an amendment to an existing senior credit facility for Dana Incorporated.
The bridge facility has a 364-day term and is intended to provide access to additional liquidity should Dana need it. The bridge facility can be terminated at the company’s option at any time.
The amended senior credit facility includes Dana’s existing revolving credit facility and term loan facilities. The amended facility also includes a temporary progressive alleviation of its sole financial maintenance covenant. The first lien net leverage ratio covenant will increase quarterly to a maximum of 4x at the end of 2020 and then decrease quarterly until it returns to 2x at the end of Q23/22. The bridge facility is in addition to the company’s senior credit facility, which includes a $1 billion revolving credit facility under which the company has drawn $300 million as of March 31.
Dana had approximately $650 million in cash and marketable securities as of March 31, and currently has $679 million available on its committed revolving credit facility, as well as $500 million on its new bridge facility for total liquidity of more than $1.8 billion. The company noted that it has no meaningful debt maturities before 2024.
Dana provides power-conveyance and energy-management solutions for light vehicles, commercial vehicles and off-highway equipment.