LAKE FOREST, Ill (
, the global $5.9 billion auto-parts supplier, will price its offering of common stock at $16.50 a share.
Earlier in the week, the company announced that it intended to offer 12 million shares to the public and will likely close the offering on November 24.
The company expects to raise up to $187 million from the sale, excluding the exercise of over-allotment options that could occur if demand for the shares becomes higher than anticipated. Underwriters would have 30 days to buy an additional 1.8 million shares to cover over-allotments.
The maker of automotive emission-control and ride-control products and systems says it will use the proceeds to repay debts under a revolving credit line and general corporate activities.
J.P. Morgan, Bank of America Merrill Lynch and Deutsche Bank are joint managing the transaction.
Tenneco shares have plummeted 6.36% to $15.90 in early afternoon trading.
Shares of major auto suppliers have been heading lower today, in sync with the major US indices. The Dow, S&P and Nasdaq all slid after reads on the latest economic data stoked worries that the economy is recovering more slowly than expected.
is trading down 3.55% at $30.66 while
has slipped 5.07% at $39.50.
-- Reported by Andrea Tse in New York
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