Tenneco To Offer 10 Million Shares, Repay Debt
DOW JONES NEWSWIRES
Tenneco Inc. (TEN) plans to publicly offer 10 million common shares, with
proceeds earmarked for repayment of its revolving credit facility and for
general corporate purposes.
The auto supplier in October posted a narrower third-quarter loss as cost cuts
boosted margins and the prior year had hefty tax-related charges. Those improved
results, along with the company's recent decision to begin reversing wage cuts
to salaried workers, indicated a brightening outlook for the company, which has
been racked by the plunge in car sales.
Shares of Tenneco were down 5.3% at $15.10 in after-hours trading. The stock
is down 17% from its 52-week high in August, but it is well above the 67-cent
low in March.
The offering, which has an overallotment option for another 1.5 million
shares, will boost shares outstanding by at least 8.8%.
-By Jay Miller, Dow Jones Newswires; 212-416-2355; jay.miller@dowjones.com
(END) Dow Jones Newswires
11-17-091802ET
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