A timely emergence from Chapter 11 bankruptcy will ensure Dana Corporation's place in the market as a strong, financially stable company, says Mike Burns, the company's chairman and chief executive officer. The Toledo, Ohio-based company recently announced that it has obtained fully underwritten commitments for a $2 billion exit financing facility, which ensures its emergence from bankruptcy by the end of January 2008. The exit facility will be underwritten by Citigroup Global Markets Inc., Lehman Brothers Inc., and Barclays Capital, and will consist of a $650 million asset-based revolving credit facility and a $1,350 million term loan facility. The facilities are secured by substantially all of the assets of Dana and most of its domestic subsidiaries. "This is a significant step toward our ability to make significant investments in our programs and to continue providing innovative products of the highest quality to our customers worldwide," Burns adds. "The fact that our exit facility is fully underwritten during difficult credit market conditions is a strong endorsement of our proposed capital structure and success in implementing our turnaround initiatives. In addition, it further ensures our timely emergence from Chapter 11 after confirmation of our plan of reorganization by the bankruptcy court." Proceeds from the facility will be used by Dana to repay its debtor-in-possession credit facility, make other payments required upon exit from bankruptcy, and provide liquidity to fund working capital and other general corporate purposes. The commitment letter remains subject to bankruptcy court approval and the funding of the commitments set forth in the commitment letter is subject to customary closing conditions. Dana was advised by Miller Buckfire & Co., AlixPartners, and Jones Day in connection with its exit financing process. For more information about the Dan Corporation, visit the company's Web site.
| 
