Long-Term Debt, Short-Term Debt, and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2014

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Summary of Long-term Debt Obligations

Long-Term Debt

A summary of our long-term debt obligations at December 31, 2014 and 2013, is set forth in the following table:

	2014		2013
	(Millions)
Tenneco Inc. —
Revolver borrowings due 2017, average effective interest rate 2.7% in 2013	$	—	$	58
Revolver borrowings due 2019, average effective interest rate 2.6% in 2014	—		—
Senior Tranche A Term Loan due 2014 through 2017, average effective interest rate 2.7% in 2013	—		228
Senior Tranche A Term Loan due 2015 through 2019, average effective interest rate 1.9% in 2014	300		—
7 3/4% Senior Notes due 2018	—		225
5 3/8% Senior Notes due 2024	225		—
6 7/8% Senior Notes due 2020	500		500
Debentures due 2015 through 2026, average effective interest rate 7.5% in 2014 and 7.5% in 2013	1		1
Other subsidiaries —
Other Long Term Debt due in 2019, average interest rate 5.45% in 2014	37		—
Notes due 2015 through 2026, average effective interest rate 1.3% in both 2014 and 2013	8		9
	1,071		1,021
Less — maturities classified as current	2		2
Total long-term debt	$	1,069	$	1,019

Summary of Short-term Debt Obligations

Information regarding our short-term debt as of and for the years ended December 31, 2014 and 2013 is as follows:

	2014		2013
	(Millions)
Maturities classified as current	$	2	$	2
Short-term borrowings	58		81
Total short-term debt	$	60	$	83

	Notes Payable(a)
	2014			2013
	(Dollars in Millions)
Outstanding borrowings at end of year	$	58		$	81
Weighted average interest rate on outstanding borrowings at end of year(b)	2.6		%	4.4		%
Maximum month-end outstanding borrowings during year	$	124		$	177
Average month-end outstanding borrowings during year	$	107		$	116
Weighted average interest rate on average month-end outstanding borrowings during year(b)	4.0		%	4.7		%

(a) Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements.

(b) This calculation does not include the commitment fees to be paid on the unused revolving credit facility balances which are recorded as interest expense for accounting purposes.

Financing Arrangements

Financing Arrangements

	Committed Credit Facilities(a) as of December 31, 2014
	Term	Commitments		Borrowings		Letters of Credit(b)		Available
	(Millions)
Tenneco Inc. revolving credit agreement	2019	1,200		—		34		1,166
Tenneco Inc. tranche A term facility	2019	300		300		—		—
Subsidiaries’ credit agreements	2015-2026	152		104		—		48
		$	1,652	$	404	$	34	$	1,214

(a) We generally are required to pay commitment fees on the unused portion of the total commitment.

(b) Letters of credit reduce the available borrowings under the revolving credit agreement.

Financial Ratios under Senior Credit Facility

The financial ratios required under the amended and restated senior credit facility (or the predecessor facility, as applicable) and the actual ratios we achieved for the four quarters of 2014, are as follows:

	Quarter Ended
	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
	Req.	Act.	Req.	Act.	Req.	Act.	Req.	Act.
Leverage Ratio (maximum)	3.50	1.22	3.50	1.55	3.50	1.57	3.50	1.63
Interest Coverage Ratio (minimum)	3.75	11.40	2.75	10.99	2.75	10.62	2.75	10.39

Proforma Consolidated Leverage Ratio

So long as no default existed, we would, however, under our senior credit facility agreement, be permitted to repay or refinance our senior notes (i) with the net cash proceeds of permitted refinancing indebtedness (as defined in the senior credit facility agreement) or with the net cash proceeds of our common stock in each case issued within 180 days prior to such repayment; (ii) with the net cash proceeds of the incremental facilities (as defined in the senior credit facility agreement) and certain indebtedness incurred by our foreign subsidiaries; (iii) with the proceeds of the revolving loans (as defined in the senior credit facility agreement); (iv) with the cash generated by our operations; (v) in an amount equal to the net cash proceeds of qualified capital stock (as defined in the senior credit facility agreement) issued by us after December 8, 2014; and (vi) in exchange for permitted refinancing indebtedness or in exchange for shares of our common stock; provided that such purchases are capped as follows (with respect to clauses (iii), (iv) and (v) based on a pro forma consolidated leverage ratio after giving effect to such purchase, cancellation or redemption):

Pro forma Consolidated Leverage Ratio	Aggregate Senior Note Maximum Amount
	(Millions)
Greater than or equal to 3.0x	$	20
Greater than or equal to 2.5x	$	100
Greater than or equal to 2.0x	$	200
Less than 2.0x	no limit