Dana Corporation Completes Successful Placement of Notes
Aug 9, 2001
TOLEDO, Ohio, Aug. 9 /PRNewswire/ -- Dana Corporation (NYSE: DCN) announced today the completion of its private placement of $575 million and 200 million Euros in 10-year, unsecured senior notes. (Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) The notes bear a coupon of 9 percent. The dollar-denominated notes were sold at par, while the Euro notes were priced at 99.186 to yield at 9.125 percent. The company will use the proceeds from the offering to repay its outstanding short-term debt. Coincident with this transaction, the company entered into interest-rate swap agreements of like notional amounts, which effectively convert the fixed rates to floating rates. Commenting on the transaction, Dana Chief Financial Officer Bob Richter said, "We were extremely pleased with the strong reception of the market to the offering. In combination with the related interest-rate swaps, for a modest premium over the floating rates we have been paying, the placement represents a major step toward assuring that we will have sufficient liquidity to address our future needs. "Not only do we now have a better balance of maturities within our debt portfolio," he added, "we have also mitigated a significant portion of our balance-sheet exposure to fluctuations in the Euro-dollar exchange rate." The securities offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve assumptions, uncertainties, and risks, and Dana's actual future results, performance, or achievements may differ materially from those expressed or implied in these statements. Factors that could affect our results include a range of economic, financial, and industry factors, many of which are beyond our control, including the factors which are detailed in Dana's public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements contained herein. Dana Corporation is one of the world's largest suppliers of components, modules, and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 35 countries and employs approximately 75,000 people. The company reported sales of $12.3 billion in 2000. Dana's Internet address is http://www.dana.com .
SOURCE Dana Corporation
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