By Paul A. Harris
Portland, Ore., April 25 – Adient US LLC priced an upsized $800 million issue of seven-year senior secured notes (Ba2/BB-) at par to yield 7% on Thursday, according to market sources.
The issue size was increased from $750 million.
The yield printed tight to yield talk in the 7 1/8% area and inside of initial guidance in the low-to-mid 7% area.
The deal went well and was up 2½ points in the secondary market shortly after the Thursday close, a trader said.
BofA Merrill Lynch was the left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays and Credit Agricole CIB were the joint bookrunners.
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 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.
| Issuer: | Adient US LLC
|
| Amount: | $800 million, increased from $750 million
|
| Maturity: | May 15, 2026
|
| Securities: | Senior secured notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays and Credit Agricole CIB
|
| Co-managers: | Deutsche Bank Securities Inc., ING, Loop Capital Markets LP, MUFG and U.S. Bancorp Investments Inc.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 458 bps
|
| Call protection: | Three years
|
| Special call: | 10% of notes annually at 103 during non-call period
|
| Trade date: | April 25
|
| Settlement date: | May 6
|
| Ratings: | Moody's: Ba2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7 1/8% area
|
| Marketing: | Roadshow
|
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