PHINIA prices $525 million 6.75% senior secured notes due 2029, amends credit agreement
PHINIA issued $525 million of 6.75% senior secured notes due 2029, upsized from $425 million, and proceeds will repay term loan B and revolving credit borrowings. The company also amended its credit agreement, raising the total net leverage covenant from 3.00:1.00 to 3.25:1.00 and removing the mandatory prepayment tied to operating cash flow, which adds debt to the balance sheet but refinances existing borrowings.
- Notes issued April 4, 2024 at 100.00% of principal, $525 million, up from $425 million planned
- Interest of 6.75% per year, paid semiannually on April 15 and October 15, first payment October 15, 2024; maturity April 15, 2029
- Proceeds to repay all outstanding term loan B and revolving credit borrowings, pay fees, and for general corporate purposes
- Credit agreement amendment with Bank of America, N.A. raises net leverage covenant to 3.25:1.00 from 3.00:1.00