Published on 8/5/2016 in the Prospect News High Yield Daily.
New Issue: Adient prices €1 billion and $900 million senior notes
By Paul A. Harris
Portland, Ore., Aug. 5 – Adient Global Holdings Ltd., the automotive seating and interiors business which Milwaukee-based Johnson Controls Inc. is spinning off, priced two tranches of senior notes (Ba3/BB) on Friday, according to a syndicate source.
The deal, which was helmed by global coordinator Citigroup, featured €1 billion of eight-year bullet notes, which priced at par to yield 3½%. The yield printed at the tight end of the 3½% to 3¾% yield talk and tight to initial guidance in the low 4% yield context. The tranche size was increased from the expected $1 billion equivalent size.
In addition Adient priced $900 million of 10-year notes at par to yield 4 7/8%. The yield printed at the tight end of yield talk in the 5% area and tight to initial guidance in the low 5% area. The tranche size was decreased from the expected $1 billion amount.
Active bookrunner Barclays will bill and deliver for the euro-denominated tranche. Credit Agricole and UniCredit were also active bookrunners for the euro-denominated notes.
Citigroup was the left lead active bookrunner for the dollar-denominated notes.
Proceeds will be used to help fund the spinoff.
The financing also includes a $3 billion credit facility.
| Issuer: | Adient Global Holdings Ltd.
|
| Securities: | Senior notes
|
| Global coordinator: | Citigroup Global Markets
|
| Trade date: | Aug. 5
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| Settlement date: | Aug. 19
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Euro-denominated notes
|
| Amount: | €1 billion
|
| Maturity | Aug. 15, 2024
|
| Active bookrunners: | Barclays (bill and deliver), Credit Agricole, UniCredit
|
| Joint bookrunners: | Banca IMI, Commerzbank, ING, Citigroup
|
| Co-managers: | BofA Merrill Lynch, Goldman Sachs, Industrial and Commercial Bank of China, MUFG, TD, U.S. Bancorp, Wells Fargo
|
| Coupon: | 3½%
|
| Price: | Par
|
| Yield: | 3½%
|
| Spread: | 386 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until three months prior to maturity, then callable at par, otherwise non-callable
|
| Price talk: | 3½% to 3¾%
|
|
|
| Dollar-denominated notes
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| Amount: | $900 million
|
| Maturity: | Aug. 15, 2026
|
| Lead left active bookrunner: | Citigroup
|
| Joint bookrunners: | BofA Merrill Lynch, Goldman Sachs, J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc., Wells Fargo
|
| Co-managers: | Banca IMI, Barclays, BBVA Securities Inc., Commerzbank Capital Markets Corp., Credit Agricole, ING Financial Markets LLC, Standard Chartered Bank, TD Securities, UniCredit
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 331 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2021, then callable at 102.438
|
| Equity clawback: | 40% at 104.875 until Aug. 15, 2019
|
| Price talk: | 5% area
|
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