Dana Inc. Completes $500M Notes Offering, Funds 2027 Note Repurchase
Ticker: DAN · Form: 8-K · Filed: May 10, 2024 · CIK: 26780
Sentiment: neutral
Topics: debt-offering, refinancing, debt-management
TL;DR
Dana just raised $500M on new debt to pay off older debt. Good sign for balance sheet.
AI Summary
On May 10, 2024, Dana Incorporated announced the completion of its previously disclosed offering of $500 million aggregate principal amount of 7.125% senior notes due 2031. The company also announced the early tender results for its offer to purchase any and all of its outstanding 5.375% senior notes due 2027. Dana intends to use the net proceeds from the new notes offering to fund the repurchase of the 2027 notes and for general corporate purposes.
Why It Matters
This transaction indicates Dana is actively managing its debt structure, potentially reducing interest expenses and improving its balance sheet by refinancing older, higher-interest debt.
Risk Assessment
Risk Level: low — This filing is a routine debt offering and refinancing, which is a common corporate finance activity with no immediate negative implications.
Key Numbers
- $500 million — New Debt Offering (Dana raised this amount through the sale of new senior notes.)
- 7.125% — Interest Rate on New Notes (The coupon rate for the 2031 senior notes.)
- 2031 — Maturity Date of New Notes (The year the new senior notes are due.)
- 5.375% — Interest Rate on Old Notes (The coupon rate for the 2027 senior notes being repurchased.)
- 2027 — Maturity Date of Old Notes (The year the senior notes being repurchased are due.)
Key Players & Entities
- Dana Incorporated (company) — Registrant
- 7.125% senior notes due 2031 (dollar_amount) — New debt offering
- $500 million (dollar_amount) — Aggregate principal amount of new notes
- 5.375% senior notes due 2027 (dollar_amount) — Notes being repurchased
FAQ
What is the total amount of the new senior notes offering?
Dana Incorporated completed an offering of $500 million aggregate principal amount of 7.125% senior notes due 2031.
What is the purpose of the new notes offering?
The net proceeds from the new notes offering are intended to fund the repurchase of outstanding 5.375% senior notes due 2027 and for general corporate purposes.
What is the interest rate on the new notes?
The new senior notes due 2031 carry an interest rate of 7.125%.
What is the interest rate on the notes being repurchased?
The notes being repurchased are the 5.375% senior notes due 2027.
When is the maturity date for the new senior notes?
The new senior notes issued by Dana Incorporated mature in 2031.
Filing Stats: 457 words · 2 min read · ~2 pages · Grade level 13 · Accepted 2024-05-10 07:00:54
Filing Documents
- d838781d8k.htm (8-K) — 23KB
- 0001193125-24-135719.txt ( ) — 137KB
- dan-20240510.xsd (EX-101.SCH) — 3KB
- dan-20240510_lab.xml (EX-101.LAB) — 17KB
- dan-20240510_pre.xml (EX-101.PRE) — 11KB
- d838781d8k_htm.xml (XML) — 3KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DANA INCORPORATED Date: May 10, 2024 By: /s/ Douglas H. Liedberg Name: Douglas H. Liedberg Title: Senior Vice President, General Counsel and Secretary 3