Adient cuts spread on $750 million term loan B to Libor plus 425 bps

By Sara Rosenberg

New York, April 24 – Adient plc lowered pricing on its $750 million five-year covenant-lite term loan B (Ba2/BB-) to Libor plus 425 basis points from Libor plus 450 bps and added a step-down that is available after Dec. 31 to Libor plus 400 bps when first-lien net leverage is less than 1.5 times, according to a market source.

Also, the original issue discount on the term loan was revised to 99.5 from 99, the source said.

The term loan includes 101 soft call protection for six months.

As before, the term loan has a 0% Libor floor.

Bank of America Merrill Lynch is the left lead arranger on the deal.

Commitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Along with the term loan, the company is getting an asset-based revolving credit facility.

Proceeds will be used to refinance existing credit facilities.

Other funds for the refinancing will come from $750 million of senior secured notes.

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

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