Adient extends revolving credit agreement to 2027; adopts SOFR

By Mary-Katherine Stinson

Lexington, Ky., Nov. 4 – Adient US LLC and Adient plc on Nov. 2 entered an amended and restated agreement to the revolving credit agreement dated May 6, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The new agreement extends the maturity of the loans to Nov. 2, 2027 and adopts SOFR as the benchmark rate, replacing Libor.

The pricing grid, with three tiers, is SOFR plus 150 basis points to 200 bps for non-FILO loans.

For FILO loans, it would be SOFR plus 225 bps to 275 bps.

Based on the unused portion, the unused line fee will be either 25 bps or 37.5 bps.

The restated agreement also provides flexibility for future amendments that incorporate sustainability-based pricing.

JPMorgan Chase Bank, NA is the administrative agent and collateral agent.

JPMorgan Chase Bank, NA, Bank of America, NA, Barclays, Citibank, NA, Credit Agricole CIB, Deutsche Bank Securities Inc. and MUFG Bank Ltd. are the joint lead arrangers, joint bookrunners and co-syndication agents.

CIBC Bank USA, ING Capital LLC, Keybanc Capital Markets Inc., Truist Securities Inc. and U.S. Bank NA are the co-documentation agents.

The loan continues to be guaranteed on a secured basis by Adient plc and certain of its wholly owned restricted subsidiaries on substantially the same terms and subject to the same exceptions as the existing credit agreement.

Adient is a Plymouth, Mich.-based manufacturer of automotive seating.

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