Lear launches $400 million five-year first-lien credit facility

By Sara Rosenberg

New York, Oct. 7 - Lear Corp.'s came out with details on its credit facility as the $400 million five-year first-lien term loan was launched with a conference call on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 575 basis points with a 2% Libor floor, and an original issue discount of 981/2, the source said.

Up to $200 million of the first-lien term loan will be delayed draw for 35 days after the closing date.

The first-lien term loan has a $200 million accordion feature, subject to the pro forma consolidated leverage ratio being less than 2.5 times and Most-Favored-Nation pricing protection will apply.

JPMorgan is the lead bank on the deal.

Proceeds will be used to refinance the company's existing $500 million DIP/exit facility that is priced at Libor plus 1,000 bps with a 3.5% Libor floor.

Commitments are due from lenders in late October and the company's exit from bankruptcy is targeted for the second week of November.

Lear is a Southfield, Mich.-based automotive parts supplier.

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