Tenneco seeks to refinance loan

Tenneco Inc., the second-biggest U.S. manufacturer of emissions control systems and products, seeks to refinance and extend bank debt to "enhance the company's financial flexibility."

Tenneco, based in Lake Forest, wants a new term loan due May 2016 and extension of a revolving credit line to as late as May 2014, the Lake Forest, Illinois-based company said today in a statement. Its senior credit facility is currently set to expire March 2012.

Tenneco owes $128 million on an existing term loan and has no borrowings outstanding under a $550 million revolver, according to a May 7 filing with the U.S. Securities and Exchange Commission. The company said it pays an interest rate 5.5 percentage points more than the London interbank offered rate on both loans. Libor is the rate banks charge to lend to each other.

JPMorgan Chase & Co. coordinated the most recent amendments to the credit facility, SEC filings show. Citigroup Inc., Bank of America Corp., Royal Bank of Scotland Group Plc and Deutsche Bank AG are also among lenders to Tenneco, according to the second amended and restated credit agreement of March 2007.