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EXHIBIT 99.1
For immediate release
Contacts: Jane Ostrander
Media Relations
847 482-5607
jane.ostrander@tenneco-automotive.com
Leslie Cleveland Hague
Investor Relations
847 482-5042
lchague@tenneco-automotive.com
TENNECO AUTOMOTIVE AMENDS SENIOR CREDIT AGREEMENT
LAKE FOREST, ILLINOIS, MARCH 22, 2001 -- Tenneco Automotive (NYSE: TEN)
announced today that it has agreed with its senior lenders to amend certain
terms of its senior credit facility. These amendments revise the financial
covenant ratios under the facility in each quarter of 2001. Tenneco Automotive
will retain access to the $500 million revolving credit facility under the
senior credit facility subject to compliance with the revised financial covenant
ratios and other terms under the senior credit facility.
"We are aggressively reducing costs and spending, and working to improve our
productivity as we continue to face very tough industry conditions -- a soft
worldwide aftermarket, and slower production in the North American light vehicle
and heavy-duty truck markets," said Mark A. McCollum, senior vice president, and
chief financial officer. "We are pleased with the approval from our senior
lenders, showing support for our strategies to address immediate challenges, as
well as our longer-term plans to grow our businesses."
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Tenneco Automotive is required to meet three financial ratios under its senior
credit agreement: a maximum leverage ratio (total debt/EBITDA), a minimum
interest coverage ratio (EBITDA/cash interest payments), and a minimum fixed
charge coverage ratio (EBITDA -- capital expenditures/cash interest payments).
For the first quarter of 2001, the maximum leverage ratio was increased from
4.75 to 6.00; the minimum interest coverage ratio was reduced from 1.70 to 1.40;
and the minimum fixed charge coverage ratio was reduced from .75 to .60. The
attached table shows the ratio adjustments for the remainder of 2001.
Tenneco Automotive is a $3.5 billion manufacturing company headquartered in Lake
Forest, Ill., with 23,000 employees worldwide. Tenneco Automotive is one of the
world's largest producers and marketers of ride control and exhaust systems and
products, which are sold under the Monroe(R) and Walker(R) global brand names.
Among its products are Sensa-Trac(R) and Reflex(TM) shocks and struts, Rancho(R)
shock absorbers, Walker(R) Quiet-Flow(TM) mufflers and DynoMax(TM) performance
exhaust products, and Monroe(R) Clevite(TM) vibration control components.
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2001
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Q1 Q2 Q3 Q4
Leverage Ratio
Prior Covenant 4.75 4.50 4.50 4.25
Revised Covenant 6.00 6.25 6.00 5.50
Interest Coverage Ratio
Prior Covenant 1.70 1.80 1.80 1.90
Revised Covenant 1.40 1.35 1.40 1.55
Fixed Charge Coverage Ratio
Prior Covenant 0.75 0.85 0.85 1.00
Revised Covenant 0.60 0.55 0.65 0.80