Lear announces early results, pricing of tender for 3.8% notes due 2027

By Rebecca Melvin

Concord, N.H., Nov. 19 – Lear Corp. announced the early results of its Nov. 4 capped cash tender offer for up to $200 million of its $750 million outstanding 3.8% senior notes due 2027 (Cusip: 521865AY1) and then the pricing terms, according to press releases on Friday.

As of 5 p.m. ET on Nov. 18, the early tender date, $338,924,000 of notes had been validly tendered and not validly withdrawn.

Because the tendered amount exceeds the offer’s maximum tender amount, the early tendered notes will be accepted on a prorated basis up to the $200 million level, and the company will not purchase additional notes after the Nov. 22 early settlement date.

Lear will pay a total consideration of $1,1040.82 per $1,000 principal amount of notes, with pricing based on the 1.25% U.S. Treasury due Oct. 31, 2026 and a fixed spread and 65 basis points. The consideration reflects a reference yield of 1.161%.

There is a $30 early tender premium per $1,000 principal amount, and interest will be paid to the settlement date.

Barclays (212 528-7581, 800 438-3242, us.lm@barclays.com), BofA Securities, Inc. (980 387-3907, debt_advisory@bofa.com) and Citigroup Global Markets Inc. (212 723-6106, ny.liabilitymanagement@citi.com) are the dealer managers.

Global Bondholder Services Corp. (contact@gbsc-usa.com, 212 430-3774, 866 470-3900) is the tender and information agent.

Lear is a Southfield, Mich.-based manufacturer and distributor of automotive seating and electrical systems.

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