Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Federal-Mogul’s Term Loan Declines as Refinancing Plan Postponed

June 20 (Bloomberg) -- Federal-Mogul Corp.’s $1.9 billion term loan due in 2014 fell two cents today after the Carl Icahn-controlled auto-parts supplier canceled plans to refinance $3.05 billion of debt, according to Markit Group Ltd.

The financing, obtained in 2007 to support the company’s exit from bankruptcy, traded at 96.6 cents on the dollar, down from 98.6 cents yesterday, the information provider said.

Federal-Mogul joins companies including Madison Dearborn Partners LLC’s Asurion Corp. and miner Walter Energy Inc. that recently postponed or withdrew debt financing transactions. The Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index fell to 97.85 cents on the dollar yesterday, from as high as 98.88 cents on May 9.

“Due to volatile market conditions, the company intends to defer the refinancing activities,” Southfield, Michigan-based Federal-Mogul said in a statement today.

Federal-Mogul was seeking a $1.75 billion term loan, a $550 million revolving credit line and $750 million of bonds, according to a June 10 regulatory filing.

Asurion, a provider of wireless handset and roadside assistance, withdrew an $850 million loan to refinance debt on June 7, according to data compiled by Bloomberg. Walter Energy canceled plans to refinance $1.55 billion of loans on June 14, Bloomberg data show.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.