Adient launches upsized $800 million seven-year secured notes at 7%; pricing Thursday

By Paul A. Harris

Portland, Ore., April 25 – Adient US LLC launched an upsized $800 million offering of seven-year senior secured notes (Ba2/BB-) at 7%, according to a market source.

The Rule 144A for life deal, which is upsized from $750 million, is set to price on Thursday.

The notes launched tight to yield talk in the 7 1/8% area and inside of initial guidance in the low-to-mid 7% area.

BofA Merrill Lynch is the left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays and Credit Agricole CIB are the joint bookrunners.

Deutsche Bank Securities Inc., ING Financial Markets LLC, Loop Capital Markets LLC, MUFG and U.S. Bancorp Investments Inc. are the co-managers.

The notes come with three years of call protection.

A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a 101% poison put.

The Plymouth, Mich.-based automotive seating company plans to use the proceeds, together with new bank debt, to repay debt under its existing credit agreement in full and for general corporate purposes.

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