Dana Lines Up $500M Delayed-Draw Term Loan to Retire 2031 Notes
DAN sits 78% above its 52-week low of $15.305.
Summary
Dana amended its credit agreement to add a $500 million delayed-draw term loan, planning to use the proceeds to redeem its 8.500% Senior Notes due 2031. The redemption is expected around July 31, 2026.
Key Events · Financing and Capital Events · DAN
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$500M Delayed-Draw Term Loan
Through Amendment No. 8 to its credit agreement, Dana established a $500 million senior secured delayed-draw term loan A facility. A single draw is permitted until August 1, 2026, and the loan matures 364 days after borrowing.
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Proceeds to Redeem 2031 Notes
The full $500 million is expected to be drawn and used to redeem all outstanding 8.500% Senior Notes due 2031 at 104.250% of principal plus accrued interest, on or around July 31, 2026.
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Amortization and Terms
Quarterly amortization payments of 10% of the outstanding principal begin on December 31, 2026, with the balance due at maturity. Interest accrues at the same rate as revolving credit advances under the existing credit agreement.
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Strategic Context
This refinancing unfolds as Dana advances toward a $5.1 billion Reverse Morris Trust combination with Eaton's Mobility business, announced in June 2026. The move may lower interest costs and extend debt maturity ahead of the merger.
Analysis · DAN · Manufacturing
Dana amended its credit agreement to add a $500 million delayed-draw term loan A facility. The company intends to draw the full amount and use the proceeds to redeem all outstanding 8.500% Senior Notes due 2031 at 104.250% of par, plus accrued interest. This refinancing replaces high-coupon debt with a floating-rate term loan, potentially reducing interest expense but adding near-term amortization requirements. The move comes amid Dana's pending $5.1 billion Reverse Morris Trust combination with Eaton's Mobility business, suggesting proactive balance sheet management ahead of the merger.
At the time of this filing, DAN was trading at $27.30 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.9B. The 52-week trading range was $15.31 to $39.56. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.