Tenneco announced that it has entered into an amendment and restatement to refinance its existing $1.063 billion senior credit facility with a new $1.5 billion senior credit facility. According to the company’s 8-K filing, JPMorgan Chase Bank served as administrative agent.

This refinancing will enhance Tenneco’s financial flexibility by lowering annual interest expense, and increasing the size and extending the term of its revolving credit facility and term loan facility.

The new senior credit facility consists of a $1.2 billion revolving credit facility and a $300 million term loan A facility, which replace Tenneco’s former $850 million revolving credit facility and $213 million term loan A facility. The revolving credit facility and the term loan A facility will each mature on December 8, 2019. The term loan A facility is payable in 20 consecutive quarterly installments, commencing March 31, 2015, with 5% being paid in each of the first two years, 7.5% in the third year, 10% in the fourth year and 72.5% in the final year. The proceeds of the term loan A facility will be used to refinance the loans outstanding under the prior senior credit facility, to pay fees and expenses relating to the refinancing transaction and for general corporate purposes.

“This new credit facility improves Tenneco’s financial flexibility and lowers our borrowing costs,” said Gregg Sherrill, chairman and CEO, Tenneco. “This refinancing extends our debt maturity profile while reducing our annual interest expense by approximately $4 million.”

Lake Forest, IL-based Tenneco is a designer, manufacturer and marketer of clean air and ride performance products and systems for automotive and commercial vehicle original equipment markets and the aftermarket.