Item 1.01 Entry into a Material Definitive Agreement.
New Credit Agreements
On November 17, 2022, Parent, the Company and Merger Sub, as initial borrower,
entered into that certain First Lien Credit Agreement with Citibank, N.A., as
administrative agent and collateral agent, the lenders from time to time party
thereto and the other parties from time to time party thereto (the "First Lien
Credit Agreement"), which provides for (i) a senior secured term A loan facility
in an aggregate principal amount equal to $1.30 billion, (ii) a senior secured
term B loan facility in an aggregate principal amount equal to $1.40 billion and
(iii) a senior secured revolving credit facility in an aggregate principal
amount equal to $0.60 billion. On November 17, 2022, the Company and Merger Sub,
as initial borrower, also entered into (a) that certain Senior Secured Interim
Credit Agreement with Bank of America, N.A., as administrative agent, the
lenders from time to time party thereto and the other parties from time to time
party thereto (the "Secured Bridge Credit Agreement"), which provides for a
senior secured bridge term facility in an aggregate principal amount equal to
approximately $1.75 billion and (b) that certain Senior Unsecured Interim Credit
Agreement with Bank of America, N.A., as administrative agent, the lenders from
time to time party thereto and the other parties from time to time party thereto
(the "Unsecured Bridge Credit Agreement" and, together with the First Lien
Credit Agreement and the Secured Bridge Credit Agreement, collectively, the
"Credit Agreements"), which provides for a senior unsecured bridge term facility
in an aggregate principal amount equal to approximately $1.00 billion. Parent
and certain of the Company's subsidiaries are guarantors under the First Lien
Credit Agreement. Certain of the Company's subsidiaries are guarantors under the
Secured Bridge Credit Agreement and the Unsecured Bridge Credit Agreement. The
obligations under the First Lien Credit Agreement and the Secured Bridge Credit
Agreement are secured on a first priority basis by substantially all assets of
the borrower and guarantors (subject to certain exclusions and exceptions). The
Credit Agreements include representations and warranties, covenants, events of
default and other provisions that are customary for facilities of their
respective types.
Item 1.02 Termination of a Material Definitive Agreement.
Repayment and Termination of Existing Credit Agreement
On November 17, 2022, in connection with the Merger, the Company terminated and
repaid in full all outstanding obligations (approximately $3.5 billion in
aggregate) due under that certain Credit Agreement, dated as of October 1, 2018,
among the Company, as borrower, certain subsidiary borrowers party thereto from
time to time, JPMorgan Chase Bank, N.A., as administrative agent, and the
lenders party thereto (as amended, restated, supplemented, waived or otherwise
modified from time to time, the "Existing Credit Agreement"). In connection with
the termination and repayment in full of all outstanding obligations under the
Existing Credit Agreement, all related liens and security interests were
terminated, discharged and released.
Redemption of all Outstanding Senior Unsecured Notes
On November 17, 2022, the Company redeemed in full all $225,000,000 aggregate
principal amount of its outstanding 5.375% Senior Notes due 2024 (the "2024
Notes") and all $500,000,000 aggregate principal amount of its outstanding 5.00%
Senior Notes due 2026 (the "2026 Notes" and together with the 2024 Notes, the
"Senior Unsecured Notes"). The redemption price for the 2024 Notes was 100.896%
of the principal amount thereof, plus accrued and unpaid interest to, but not
including, the redemption date, and totaled approximately $232.1 million. The
redemption price for the 2026 Notes was 101.667% of the principal amount
thereof, plus accrued and unpaid interest
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to, but not including, the redemption date, and totaled approximately
$516.8 million.
Purchase and Cancellation of Senior Secured Notes Tendered in Tender Offer
On November 17, 2022, Merger Sub completed its cash tender offer for the
Company's 5.125% Senior Secured Notes due 2029 (the "5.125% Notes") and the
Company's 7.875% Senior Secured Notes due 2029 (the "7.875% Notes" and together
with the 5.125% Notes, the "Senior Secured Notes") by purchasing (i)
$494,184,000 aggregate principal amount of 7.875% Notes tendered in the tender
offer for a total purchase price of approximately $513.4 million and (ii)
$796,297,000 aggregate principal amount of 5.125% Notes tendered in the tender
offer for a total purchase price of approximately $809.2 million. The Senior
Secured Notes purchased in the tender offer represented 98.8% of the outstanding
7.875% Notes and 99.5% of the outstanding 5.125% Notes. The repurchased Senior
Secured Notes were delivered to the trustee for cancellation.
Call for Redemption and Discharge of Remaining Senior Secured Notes
Following the cancellation of the Senior Secured Notes tendered in the tender
offer, on November 17, 2022, the Company issued irrevocable and unconditional
notices of redemption for all of the remaining outstanding Senior Secured Notes
. . .
Item 2.01 Completion of Acquisition or Disposition of Assets.
The information set forth in the Introductory Note, Item 3.01, Item 5.01, Item
5.02 and Item 5.03 of this Current Report on Form 8-K is incorporated by
reference into this Item 2.01.
At the Effective Time, and as a result of the Merger:
• each share of Class A voting common stock, par value $0.01 per share, of
the Company, that was issued and outstanding immediately prior to the
Effective Time (the "Shares"), other than shares to be cancelled pursuant
to Section 2.1(b) of the Merger Agreement and Dissenting Shares (as
defined in the Merger Agreement), was converted into the right to receive
$20.00 in cash, without interest (the "Merger Consideration");
• each outstanding award of Company cash-settled performance share units
(each, a "Cash-Settled PSU"), whether vested or unvested, became fully
vested and was cancelled in exchange for the right to receive an amount
in cash (subject to any applicable withholding taxes) equal to the
product of (x) the total number of Shares or Share equivalents underlying
such award of Cash-Settled PSUs (based on all applicable performance
criteria being achieved at target performance), multiplied by (y) the
Merger Consideration.
• each outstanding award of Company cash-settled restricted stock units
(each, a "Cash-Settled RSU"), whether vested or unvested, became fully
vested and was cancelled in exchange for the right to receive an amount
in cash (subject to any applicable withholding taxes) equal to the
product of (x) the total number of Shares underlying such award of
Cash-Settled RSUs, multiplied by (y) the Merger Consideration.
• each outstanding award of Share-settled Company restricted stock units
(each, a "Share-Settled RSU") that at such time was subject solely to
service-based vesting conditions became fully vested and was cancelled in
exchange for the right to receive an amount in cash (subject to any
applicable withholding taxes) equal to the product of (x) the total
number of Shares underlying such award of Share-Settled RSUs, multiplied
by (y) the Merger Consideration.
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• each outstanding award of Company share-settled performance share units
(each, a "Share-Settled PSU") that at such time was subject to
performance-based vesting conditions became vested as to the number of
Shares subject to such award that would vest at the target level, and,
after giving effect to such vesting, was cancelled in exchange for the
right to receive an amount in cash (subject to any applicable withholding
. . .
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
The information set forth in the Introductory Note and Item 2.01 of this Current
Report on Form 8-K is incorporated by reference into this Item 3.01.
On the Closing Date (as defined in the Merger Agreement), in connection with the
consummation of the Merger, Tenneco notified the New York Stock Exchange (the
"NYSE") that the Merger had been consummated and requested that the trading of
Shares on the NYSE be suspended on the same day and that the listing of Shares
on the NYSE be withdrawn on that day. In addition, Tenneco requested that the
NYSE file with the SEC a notification on Form 25 to report the delisting of its
Shares from the NYSE and to deregister its Shares under Section 12(b) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). Tenneco
intends to file with the SEC a Form 15 requesting the termination of
registration of the Company Shares under Section 12(g) of the Exchange Act and
the suspension of reporting obligations under Section 13 and Section 15(d) of
the Exchange Act.
Item 3.03 Material Modification to Rights of Security Holders.
The information set forth in the Introductory Note, Item 2.01, Item 3.01, Item
5.01 and Item 5.03 of this Current Report on Form 8-K is incorporated by
reference into this Item 3.03.
Item 5.01 Changes in Control of Registrant.
The information set forth in the Introductory Note, Item 2.01, Item 3.01, Item
5.02 and Item 5.03 of this Current Report on Form 8-K is incorporated by
reference into this Item 5.01.
As a result of the consummation of the Merger, a change of control of Tenneco
occurred and Tenneco became a direct, wholly owned subsidiary of Parent.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
The information set forth in the Introductory Note and Item 2.01 of this Current
Report on Form 8-K is incorporated by reference into this Item 5.02.
On November 16, 2022, the board of directors of Tenneco approved an amendment to
the Company's Change in Control Severance Benefit Plan for Key Executives, (the
"CIC Severance Plan Amendment") effective as of November 16, 2022. This
amendment provides each participant whose employment terminates under
circumstances giving rise to severance payments under the severance plan with a
lump sum cash payment equal to the employer portion of the participant's
applicable welfare benefit insurance premium(s) (plus income taxes) otherwise
payable over the number of months that the participant otherwise would have
received coverage under the applicable Tenneco welfare benefit plans, but for
this amendment.
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The foregoing summary of the CIC Severance Plan Amendment is not complete and is
qualified in its entirety by reference to the full text of the CIC Severance
Plan Amendment, a copy of which is attached as Exhibit 3.1 to this Current
Report on Form 8-K and incorporated in this Item 5.02 by reference.
At the Effective Time, pursuant to the terms of the Merger Agreement, each of
Dennis J. Letham, Brian J. Kesseler, Roy V. Armes, Thomas C. Freyman, Denise
Gray, Michelle A. Kumbier, James S. Metcalf, Alexsandra A. Miziolek, Charles K.
Stevens III and John Stroup, each a director of Tenneco as of immediately prior
to the Effective Time, ceased to be a director of Tenneco, as the surviving
entity of the Merger. At the Effective Time, pursuant to the terms of the Merger
Agreement, Michael A. Reiss and Shahid Bosan became directors of Tenneco, as the
surviving entity of the Merger.
At the Effective Time, each of Brian J. Kesseler, Matti Masanovich, Thomas J.
Sabatino, Jr., Kaled Awada and Scott Usitalo, who were officers of Tenneco
immediately prior to the Effective Time, resigned as officers of Tenneco, as the
surviving entity of the Merger. .
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
Year.
The information set forth in the Introductory Note and Item 2.01 of this Current
Report on Form 8-K is incorporated by reference into this Item 5.03.
In connection with the completion of the Merger, on the Closing Date, Tenneco
filed with the Secretary of State of the State of Delaware the certificate of
merger relating to the Merger. At the Effective Time, Tenneco's certificate of
incorporation was amended and restated in its entirety to be the certificate of
incorporation of Merger Sub as in effect immediately prior to the Effective Time
(subject to the changes required by Section 5.9 of the Merger Agreement). In
connection with the completion of the Merger and pursuant to the Merger
Agreement, at the Effective Time, the board of directors of Tenneco, as the
surviving entity, adopted the by-laws of Merger Sub (subject to the changes
required by Section 5.9 of the Merger Agreement) as the amended and restated
bylaws of Tenneco. Copies of Tenneco's amended and restated certificate of
incorporation and by-laws are filed as Exhibits 4.1 and 4.2, respectively, to
this Current Report on Form 8-K and are incorporated by reference herein.
Item 8.01 Other Events.
On November 17, the Company and Parent announced that they had consummated the
Merger pursuant to the terms and conditions set forth in the Merger Agreement. A
copy of the press release is attached hereto as Exhibit 99.1 and incorporated by
reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number Description
2.1 Agreement and Plan of Merger, dated as of February 22, 2022, by and
among Tenneco Inc., a Delaware corporation, Pegasus Holdings III, LLC,
a Delaware limited liability company, and Pegasus Merger Co., a
Delaware corporation and wholly owned subsidiary of Parent
(incorporated by reference to Exhibit 2.1 to the Company's Current
Report on Form 8-K filed February 23, 2022).
3.1 First Amendment to the Tenneco Inc. Change in Control Severance
Benefit Plan for Key Executives, dated as of November 16, 2022.
4.1 Amended and Restated Certificate of Incorporation of Tenneco Inc.
4.2 Amended and Restated Bylaws of Tenneco Inc.
99.1 Press release announcing the consummation of the Merger, issued by
the Parent on November 17, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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