Tenneco Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release

December 23, 2008

 
TENNECO AMENDS FINANCIAL COVENANT FOR FOURTH QUARTER
 
Lake Forest, Illinois, December 23, 2008 – Tenneco (NYSE: TEN) announced today that its senior lenders have agreed to amend a financial covenant in Tenneco’s senior secured credit facility for the fourth quarter of 2008, which relaxes the leverage covenant ratio (net debt/EBITDA) by increasing the maximum ratio to 4.25 from a maximum ratio of 4.0.  The company requested the amendment as a precautionary step to provide cushion if needed to meet the leverage ratio requirement in light of deteriorating automotive industry conditions in the fourth quarter.

"We are pleased with the strong support from our senior lenders in amending the leverage covenant ratio in consideration of difficult market conditions globally," said Gregg Sherrill, chairman and CEO, Tenneco.  "This amendment gives us more financial flexibility as we close out the year and continue to aggressively manage costs and preserve cash to help counter the impact of rapidly declining OE production schedules and extended customer plant shutdowns."

Tenneco intends to meet with its lenders to evaluate a more comprehensive amendment early in 2009.

The company has agreed to increase the rate it will pay on its senior credit facility from LIBOR + 150 basis points to LIBOR + 300 basis points if the leverage ratio is 4.0 or below, and LIBOR + 325 basis points if the leverage ratio is above 4.0.  The company has also agreed to pay each consenting lender a fee.  That fee plus other amendment costs are expected to total approximately $3 million.

Tenneco is a $6.2 billion global manufacturing company with headquarters in Lake Forest, Illinois and approximately 21,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of emission control and ride control products and systems for the automotive original equipment market and the aftermarket.  Tenneco markets its products principally under the Monroe®, Walker®, Gillet™ and Clevite®Elastomer brand names. 



CONTACT:
Jane Ostrander
Investor/media inquiries
847 482-5607
847 612-3595 (mobile)
jostrander@tenneco.com

Jim Spangler
Media inquiries
847 482-5810
847 224-4813 (mobile)
jspangler@tenneco.com 
 

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