By Paul A. Harris
Portland, Ore., April 20 – Adient priced an upsized $600 million issue of five-year first-lien notes (Ba3/B+) at par to yield 9% in a Monday drive-by, according to market sources.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were BofA Securities Inc., Credit Agricole CIB and J.P. Morgan Securities LLC.
The issue size increased from $500 million, and the notes priced 12.5 basis points through yield talk in the 9¼% area. Initial talk had the deal coming to yield in the high 9% area.
The notes come with a springing maturity that moves forward to May 15, 2024 if Adient's senior unsecured notes due 2024 have not been refinanced by that date.
In addition to a conventional high-yield call structure there is a special call provision for the first 120 days after the issue date during which the issuer may redeem up to 35% of the notes at 104.5 with the proceeds of any loan received pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The notes were issued via Adient US LLC.
The Plymouth, Mich.-based manufacturer of automotive seating plans to use the proceeds for working capital and general corporate purposes. The additional proceeds resulting from the $100 million upsizing of the deal will also be used for general corporate purposes.
| Issuers: | Adient US LLC
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | April 15, 2025
|
| Springing maturity: | May 15, 2024 if Adient's senior unsecured notes due 2024 have not been refinanced by that date
|
| Securities: | First-lien notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Securities Inc., Credit Agricole CIB and J.P. Morgan Securities LLC
|
| Co-managers: | Barclays, Deutsche Bank Securities Inc., ING Financial Markets LLC, Loop Capital Markets LLC, MUFG, U.S. Bancorp Investments Inc. and Evercore
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 865 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until April 15, 2022, then callable at 104.5
|
| Special call: | Up to 35% of issue at 104.5 for first 120 days with proceeds from Coronavirus Aid, Relief, and Economic Security (CARES) Act loan proceeds
|
| Equity clawback: | 35% at 109 until April 15, 2022
|
| Trade date: | April 20
|
| Settlement date: | April 23
|
| Ratings: | Moody's: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¼% area
|
| Marketing: | Drive-by
|
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