Adient talking over options to refinance credit facilities with banks

By Wendy Van Sickle

Columbus, Ohio, Jan. 16 – Adient Ltd. said it has initiated discussions with its bank group to evaluate options to refinance its existing credit facilities as part of a comprehensive assessment.

“After completing a comprehensive assessment during the first 100 days of my tenure, we are taking actions to improve our financial performance, including assembling a strong management team aligned with turning around our business; reducing our overhead spend; and focusing relentlessly on commercial and operational excellence,” Doug Del Grosso, president and chief executive officer, said in a news release issued on Wednesday.

In a slide presentation filed with the Securities and Exchange Commission, the company reported that it has “very low” secured leverage, with options to refinance its secured debt to a more flexible structure that would reduce or eliminate covenant exposure.

At Sept. 30, the company’s secured debt consisted of a $1.2 billion term loan A due 2021 and $187 million of European Investment Bank debt.

At Sept. 30, the company reported a secured leverage ratio of 0.58x.

Adient noted that most of its debt is unsecured and does not come due until 2024 and 2026.

London-based Adient is an automotive seating and interiors company.

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