July 30, 2013
/PRNewswire/ -- Dana Holding Corporation (NYSE: DAN) today announced a definitive agreement with Centerbridge Capital Partners, L.P. to repurchase all 2,500,000 shares of Series A preferred stock outstanding for
per underlying common share, representing an aggregate price of approximately
. The transaction is contingent on the successful closing of a senior notes offering.
This transaction will allow Dana to deliver value to all of its shareholders by simplifying its capital structure and reducing the number of fully diluted shares outstanding by approximately 10 percent. At the completion of this transaction, Dana will have repurchased approximately
in common and preferred shares, including more than
of common shares already repurchased since last October. Authorization remains for the additional repurchase of approximately
of common shares.
Upon completion of the transaction, the Series A preferred shares owned by Centerbridge will be retired. In conjunction with this transaction, Centerbridge-affiliated directors
Mark T. Gallogly
Brandt F. McKee
and Series A nominee
Richard F. Wallman
will relinquish their seats on Dana's board of directors. Dana will examine the composition of the board and will begin a search to fill the vacancies. Joseph C. Muscari, non-executive chairman of the Dana board and a former chief financial officer of Alcoa Inc., will replace Mr. Wallman as chairman of the Audit Committee of the board.
"On behalf of the Dana board, I'd like to personally thank Centerbridge and our departing directors for their unwavering and strong support as we have built our leadership team, developed our strategy, and positioned Dana for future success," Mr. Muscari said.
Mr. Gallogly, Managing Principal of Centerbridge, commented, "Dana has a strong management team and is well positioned for sustainable, profitable growth. We are delighted with the transformation that has taken place at Dana during our investment period and believe the company and its team will have continued success."