DANA Inc 8-K

What Happened

• On July 10, 2026, DANA Inc. (Dana) entered into Amendment No. 8 to its Credit and Guaranty Agreement, creating a new senior secured Delayed Draw Term Loan A Facility for $500.0 million. The facility can be drawn in a single advance any time before August 1, 2026 and matures 364 days after the draw.
• Dana expects to fully draw the new $500M facility and use the proceeds to redeem all outstanding 8.500% Senior Notes due 2031 (the “2031 Notes”) issued by Dana Financing Luxembourg S.à r.l. on or around July 31, 2026. The stated redemption price is 104.250% of principal plus accrued interest.

Key Details

• Facility size: $500.0 million delayed-draw term loan A; single draw available through August 1, 2026.
• Maturity and payments: matures 364 days after borrowing; requires quarterly amortization payments equal to 10% of principal starting December 31, 2026, with remaining balance due at maturity.
• Interest and security: advances accrue interest at the same rate as Revolving Credit Advances under the Credit Agreement; the loan is guaranteed by Dana’s restricted wholly owned U.S. subsidiaries and secured by a first-priority lien on substantially all assets (subject to exceptions).
• Planned use of proceeds: repayment/repurchase of the 8.500% Senior Notes due 2031 at a redemption price of 104.25% plus accrued interest; payment of related fees and expenses.

Why It Matters

• This amendment provides near-term liquidity and a clear plan to refinance or retire Dana’s higher-coupon 2031 notes, which will require a material cash outflow (including the 104.25% redemption premium).
• The loan is secured and guaranteed by domestic subsidiaries and pledges substantially all assets, which increases Dana’s secured leverage and could affect creditor priorities.
• Quarterly amortization beginning late 2026 creates earlier principal payments than a single bullet maturity, so investors should note the added near-term cash obligations.
• The filing contains forward-looking statements about drawing the facility and completing the redemption; these plans are subject to risks and may change.