Tenneco Inc. (NYSE: TEN) today announced that it has reached an agreement with its senior lenders to amend the leverage covenant ratio of its senior credit facility, which increases the Company’s maximum net leverage ratio to 4.50 through the first quarter of 2021. Moving forward, the covenant decreases gradually until 3.50 is reached by the fourth quarter of 2022.
“We are pleased to have reached this agreement with our lenders, as the amendment enhances our financial flexibility to respond to challenging market conditions, execute our strategy, and ensure continued compliance with our covenants,” said Jason Hollar, executive vice president and chief financial officer of Tenneco. “Lowering our leverage profile and improving our balance sheet remain among our top priorities. We have a disciplined focus on cost reductions and cash flow improvements, in order to position both our business divisions for a successful planned separation.”
SOURCE: Tenneco
