Lear overnight $200 million (proceeds) convertibles talked 4.25%-4.75% yield, up 25-30%

By Ronda Fears

Nashville, Tenn., Feb. 13 - Lear Corp. launched an overnight deal, pitching $200 million in proceeds of zero-coupon convertible subordinated notes with pricing guidance of a 4.25% to 4.75% yield and a 25% to 30% initial conversion premium. Credit Suisse First Boston is sole lead manager of the Rule 144A deal, which is pricing after the close Wednesday.

There is a contingent conversion feature with a 120% trigger, declining to 110% at maturity. The deal also has a $50 million greenshoe.

Southfield, Mich.-based Lear makes seats and other automotive components. On Friday, the company said it will cut 6,500 jobs, or about 6% of its work force, and close 21 sites worldwide to cut costs amid slower vehicle production. The company posted a fourth quarter net loss of $48.8 million, or 74c a share, compared with a profit of $72.4 million, or $1.12 a share, for fourth quarter 2000. For 2001, Lear earned $160 million, or $2.45 per share, also before special items.

The company said it sees first quarter revenues down 2% to 4%, with earnings per share in the range of 26c to 30c a share before goodwill amortization of 28c a share. For 2002, Lear forecast earnings of $2 to $3 per share, excluding one-time items.

Lear shares closed up 38c to $41.60.

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