Federal-Mogul Corp., the auto-parts supplier controlled by billionaire Carl Icahn, is seeking $3.05 billion of debt to refinance.
The funding will consist of a $1.75 billion term loan, a $550 million revolving credit line and $750 million of senior notes, the company said in a regulatory filing.
Citigroup Inc. will host a meeting with prospective lenders tomorrow morning in New York, according to a person with knowledge of the transaction who asked not to be identified because the deal is private.
The company, based in Southfield, Michigan, said it expects to complete the refinancing “shortly after” selling $500 million of shares under a rights offering that began on June 7.
Moody’s Investors Service said May 30 that any debt reduction from the rights offering would have “no impact” on the company’s B2 credit rating, which is five levels below investment-grade.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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