Adient increases five-year term loan B amount to $800 million

By Sara Rosenberg

New York, April 25 – Adient plc upsized its five-year covenant-lite term loan B to $800 million from $750 million, according to a market source.

Pricing on the term loan is Libor plus 425 basis points with 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, a 0% Libor floor and an original issue discount of 99.5.

The loan has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan was lowered from Libor plus 450 bps, the step-down was added and the discount was changed from 99.

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

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

Proceeds will be used to refinance existing credit facilities and for general corporate purposes.

Other funds for the transaction will come from $800 million of senior secured notes, upsized from $750 million.

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

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