Federal-Mogul Corporation : Federal-Mogul Defers Refinancing and Extends
Rights Offering Expiration Date
Southfield, Michigan, June 20, 2013 . Federal-Mogul Corporation (NASDAQ:FDML)
commenced a common stock rights offering on June 7, 2013. At that time, the
Company had initiated discussions with potential financing sources in
connection with the refinancing of its outstanding indebtedness, and the
Company expected that the refinancing would be completed shortly after the
completion of the rights offering. Due to volatile market conditions, the
Company intends to defer the refinancing activities. The Company will
continue to evaluate market conditions and other relevant factors in
connection with the potential refinancing of all or a portion of the Company's
outstanding indebtedness. There can be no assurances as to the ultimate
timing or terms of any such refinancing.
The completion of the Company's rights offering is not conditioned upon the
completion of the refinancing. However, the Company has determined, in light
of the deferral of the refinancing, to offer rights holders the ability to
withdraw the exercise of any previously exercised subscription rights and to
extend the expiration date of the rights offering from June 27, 2013 to 5:00
p.m. EDT on July 1, 2013.
The rights are transferrable and, with respect to trading, the Company
understands that actions have been taken by a market-maker to list the rights
on the OTC Bulletin Board. Any questions regarding the rights offering should
be directed to D.F. King & Co. Inc., the Information Agent for the rights
offering, by calling 1-800-901-0068 (toll-free) or 1-212-269-5550 (collect),
or Computershare Trust Company, N.A., the Subscription Agent for the rights
offering, by calling 1-800-546-5141.
The rights offering is being made pursuant to a shelf registration statement
on Form S-3 that was previously filed with the Securities and Exchange
Commission (the "SEC") and became effective on May 1, 2013. The rights
offering is being made solely by means of the prospectus and prospectus
supplement that was filed with the SEC on June 7, 2013. Additional
information regarding the rights offering is set forth in the prospectus
supplement that was filed with the SEC on June 7, 2013.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy any securities, nor shall there be any offer, solicitation
or sale of securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such state.
Federal-Mogul Corporation (NASDAQ: FDML) is a leading global supplier of
products and services to the world's manufacturers and servicers of vehicles
and equipment in the automotive, light, medium and heavy-duty commercial,
marine, rail, aerospace, power generation and industrial markets. The
company's products and services enable improved fuel economy, reduced
emissions and enhanced vehicle safety.
Federal-Mogul operates two independent business segments, each with a chief
executive officer reporting to Federal-Mogul's Board of Directors.
Federal-Mogul's Powertrain Segment designs and manufactures original equipment
powertrain components and systems protection products for automotive,
heavy-duty, industrial and transport applications.
Federal-Mogul's Vehicle Components Segment sells and distributes a broad
portfolio of products through more than 20 of the world's most recognized
brands in the global vehicle aftermarket, while also serving original
equipment vehicle manufacturers with products including braking, chassis,
wipers and other vehicle components. The company's aftermarket brands include
ANCO^® wiper blades; Champion^® spark plugs, wipers and filters; AE^®,
Fel-Pro^®, FP Diesel^®, Goetze^®, Glyco^®, Nüral^®, Payen^® and Sealed Power^®
engine products; MOOG^® steering and suspension parts; and Ferodo^® and
Wagner^® brake products. Federal-Mogul was founded in Detroit in 1899. The
company employs 45,000 people in 34 countries, and its worldwide headquarters
is in Southfield, Michigan, United States. For more information, please visit
Statements contained in this press release, which are not historical fact,
constitute "Forward-Looking Statements." Actual results may differ materially
due to numerous important factors that are described in Federal-Mogul's most
recent report to the SEC on Form 10-K, which may be revised or supplemented in
subsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include,
among others, fluctuations in domestic or foreign vehicle production;
fluctuations in the demand for vehicles containing our products; the ability
to refinance the Company's outstanding indebtedness on commercially reasonable
terms or at all; the ability to successfully complete the rights offering and
the possible effects of the rights offering on the Company's stockholders; the
Company's ability to generate cost savings or manufacturing efficiencies to
offset or exceed contractually or competitively required price reductions or
price reductions to obtain new business; the costs, timing and success of the
Company's restructuring actions; conditions in the automotive industry; the
success of the company's segmentation and corresponding effects; and general
global and regional economic conditions. Federal-Mogul does not intend or
assume any obligation to update any forward-looking statements.
CONTACTS: Steve Gaut (248) 354-7826 for investor and media questions
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Federal-Mogul Corporation via Thomson Reuters ONE
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