Associated Press | Auto parts supplier Tenneco Inc. said Friday that it has reached a deal
with lenders to raise some of its credit lines and extend their terms.

The Lake Forest company said its $550 million revolving credit facility
will rise to $622 million until March 16, 2012, when $66 million worth
of commitments from other lenders expire. After that, the revolver will
total $556 million and mature on May 31, 2014, the company said in a
statement.

Also, the revolver will mature in 2013 if Tenneco doesn’t refinance its secured notes or a portion of the revolver during that year, the statement said.

The deal also includes better interest rates if Tenneco can further reduce its net leverage ratio.

The company also will refinance and raise the limit on a $128 million term loan that was to mature in March of 2012. The loan now goes to $150 million and matures on June 3, 2016. Like the revolver, it matures in 2013 if the company doesn’t refinance its senior secured and subordinated notes.

Tenneco expects to record a $1 million charge in the second quarter due to the changes.