Affinia Completes $225 Million Senior Secured Notes Offering and Replaces Existing Facilities
FOR IMMEDIATE RELEASE
Scott Howat
Director of Corporate Communications
(734) 827-5421

Affinia Completes $225 Million Senior Secured Notes Offering and Replaces Existing Facilities

ANN ARBOR, MICH. — August 13, 2009

Affinia Group Inc., a global leader in the on and off-highway replacement products and service industry, announced today that it has closed its previously announced offering of $225 million aggregate principal amount of senior secured notes due 2016. The notes accrue interest at a rate of 10.75% per annum and have been issued at a price equal to 98.799% of their face value. The notes are guaranteed by the parent and substantially all of the U.S. subsidiaries of the Company. The notes and the guarantees are secured by first-priority liens on substantially all of the Company's and its guarantors' tangible and intangible assets (other than accounts receivable, inventory, cash, deposit accounts, securities accounts and proceeds of the foregoing and certain assets related thereto, which will secure the company’s asset-based revolving credit facility described below on a first-priority lien basis) and by second-priority liens on the Company’s and the guarantors’ accounts receivable, inventory, cash, deposit accounts, securities accounts and proceeds of the foregoing and certain assets related thereto.

 

The Company also announced that it has entered into a new $315 million asset-based revolving credit facility with Bank of America, N.A., as administrative agent today. The new credit facility includes an option, subject to certain conditions, to increase available commitments to $160 million in the future. The new credit facility is scheduled to mature, and the commitments thereunder will terminate, on the fourth anniversary of the closing date.

 

Similar to the new senior secured notes, the new credit facility is guaranteed by substantially all of the U.S. subsidiaries of the Company as well as certain of its Canadian subsidiaries. It is secured by first-priority liens on substantially all of the assets on which the Company's new senior secured notes have a second-priority lien and by second-priority liens on the assets on which the Company's new senior secured notes have a first-priority lien.

 

The Company used the proceeds from the notes offering along with borrowings under the new credit facility to repay all outstanding borrowings under its existing credit facilities and trade accounts receivables facility, which are being replaced in this refinancing.

 

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The notes were sold only to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended. The notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state laws.

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This news release includes ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, as amended (the ‘‘Securities Act’’) and Section 21E of the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’). These forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, business trends and other information that is not historical information. When used in this news release, the words ‘‘estimates,’’ ‘‘expects,’’ ‘‘anticipates,’’ ‘‘projects,’’ ‘‘plans,’’ ‘‘intends,’’ ‘‘believes,’’ ‘‘forecasts,’’ or future or conditional verbs, such as ‘‘will,’’ ‘‘should,’’ ‘‘could’’ or ‘‘may,’’ and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, management’s examination of historical operating trends and data are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there is no assurance that these expectations, beliefs and projections will be achieved.

 

With respect to all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

 

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this report. Such risks, uncertainties and other important factors include, among others: the impact of the recent turmoil in the financial markets on the availability and cost of credit; financial viability of key customers and key suppliers; our substantial leverage; limitations on flexibility in operating our business contained in our debt agreements; pricing and import pressures; the shift in demand from premium to economy products; our dependence on our largest customers; changing distribution channels; increasing costs for manufactured components, raw materials, crude oil and energy; our ability to achieve cost savings from our restructuring; increased costs in imported products from low cost sources; the consolidation of distributors; risks associated with our non-U.S. operations; product liability and customer warranty and recall claims; changes to environmental and automotive safety regulations; risk of impairment to intangibles and goodwill; risk of successful refinancing if required; non-performance by, or insolvency of, our suppliers or our customers; work stoppages or similar difficulties that could significantly disrupt our operations, and other labor disputes; challenges to our intellectual property portfolio; changes in accounting standards that impact our financial statements; difficulties in developing, maintaining or upgrading information technology systems; the adequacy of our capital resources for future acquisitions; our ability to successfully combine our operations with any businesses we have acquired or may acquire; effective tax rates and timing and amounts of tax payments; and our exposure to a recession. Additionally, there may be other factors that could cause our actual results to differ materially from the forward-looking statements.

 


All forward-looking statements apply only as of the date of this news release and the Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after such date.

 

 

 

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