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

12 Months Ended

Dec. 31, 2013

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Summary of Long-term Debt Obligations

Long-Term Debt

A summary of our long-term debt obligations at December 31, 2013 and 2012, is set forth in the following table:

	2013		2012
	(Millions)
Tenneco Inc. —
Revolver borrowings due 2017, average effective interest rate 2.7% in 2013 and 1.2% in 2012	$	58	$	92
Senior Term Loan due 2014 through 2017, average effective interest rate 2.7% in 2013 and 3.0% in 2012	228		241
7 3/4% Senior Notes due 2018	225		225
6 7/8% Senior Notes due 2020	500		500
Debentures due 2014 through 2026, average effective interest rate 7.5 in 2013 and 8.4% in 2012	1		1
Customer Notes due 2013, average effective interest rate 8.0% in 2013 and 2012	—		1
Other subsidiaries —
Notes due 2014 through 2026, average effective interest rate 1.3% in both 2013 and 2012	9		10
	1,021		1,070
Less — maturities classified as current	2		3
Total long-term debt	$	1,019	$	1,067

Summary of Short-term Debt Obligations

Information regarding our short-term debt as of and for the years ended December 31, 2013 and 2012 is as follows:

	2013		2012
	(Millions)
Maturities classified as current	$	2	$	3
Short-term borrowings	81		110
Total short-term debt	$	83	$	113

	Notes Payable(a)
	2013			2012
	(Dollars in Millions)
Outstanding borrowings at end of year	$	81		$	110
Weighted average interest rate on outstanding borrowings at end of year(b)	4.4		%	5.3		%
Approximate maximum month-end outstanding borrowings during year	$	177		$	156
Approximate average month-end outstanding borrowings during year	$	116		$	123
Weighted average interest rate on approximate average month-end outstanding borrowings during year(b)	4.7		%	5.5		%

(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, 2013
	Term	Commitments		Borrowings		Letters of Credit(b)		Available
	(Millions)
Tenneco Inc. revolving credit agreement	2017	850		58		37		755
Tenneco Inc. tranche A term facility	2017	228		228		—		—
Subsidiaries’ credit agreements	2014-2026	110		90		—		20
		$	1,188	$	376	$	37	$	775

(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 and, the actual ratios we achieved for the four quarters of 2013, are as follows:

	Quarter Ended
	March 31, 2013		June 30, 2013		September 30, 2013		December 31, 2013
	Req.	Act.	Req.	Act.	Req.	Act.	Req.	Act.
Leverage Ratio (maximum)	3.50	1.98	3.50	1.79	3.50	1.86	3.50	1.39
Interest Coverage Ratio (minimum)	2.55	8.39	2.55	8.74	2.55	9.09	2.55	9.89

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); (ii) with the net cash proceeds of the incremental facilities (as defined in the senior credit facility agreement); (iii) with the net cash 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 March 22, 2012; 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) 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