By Paul A. Harris
Portland, Ore., Feb. 28 – Adient Global Holdings Ltd. priced an upsized $1 billion of high-yield notes in two tranches on Tuesday, according to market sources.
The deal, which was increased from $850 million, included an upsized $500 million tranche of five-year senior secured notes (Ba3/BB+) that priced at par to yield 7%.
The tranche size increased from $850 million.
The yield printed in the middle of the 6 7/8% to 7 1/8% yield talk. Early guidance was in the low-to-mid 7% area.
Adient also priced a $500 million tranche of eight-year senior notes (B3/BB-) at par to yield 8¼%.
The unsecured notes yield also came in the middle of yield talk in the 8¼% area. Early guidance was in the low-to-mid 8% area.
BofA Securities Inc. was at the left of a syndicate of bookrunners that also included J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Agricole CIB, Barclays, MUFG Securities Americas Inc. and Deutsche Bank Securities Inc.
Demand was skewed toward the secured notes, which played to $1 billion of orders, according to a sellside source.
The unsecured notes saw $700 million of demand, the source added.
The deal priced on an accelerated timeline. When announced on Tuesday morning it had been expected to remain in the market until Wednesday.
The Plymouth, Mich.-based supplier of automotive seating expects to use the proceeds plus cash on hand to redeem $750 million of its 3½% senior notes due 2024 and to prepay $200 million of its senior secured term loan facility maturing in 2028. Incremental proceeds resulting from the $150 million upsizing of the deal will also be applied to the term loan facility.
| Issuer: | Adient Global Holdings Ltd.
|
| Amount: | $1 billion, increased from $850 million
|
| Trade date: | Feb. 28
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| Settlement date: | March 14
|
| Distribution: | Rule 144A for life and Regulation S
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Agricole CIB, Barclays, MUFG Securities Americas Inc. and Deutsche Bank Securities Inc.
|
| Co-managers: | CIBC World Markets Corp., ING Financial Markets LLC, KeyBanc Capital Markets Inc., Truist Securities Inc. and U.S. Bancorp Investments Inc.
|
| Marketing: | Drive-by
|
|
|
| Secured notes
|
| Amount: | $500 million, increased from $350 million
|
| Issue: | Senior secured notes
|
| Maturity: | April 15, 2028
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 281 bps
|
| First call: | April 15, 2025 at 103.5
|
| Ratings: | Moody's: Ba3
|
| S&P: BB+
|
| Price talk: | 6 7/8% to 7 1/8%
|
|
|
| Unsecured notes
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| Amount: | $500 million
|
| Issue: | Senior notes
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| Maturity: | April 15, 2031
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| Coupon: | 8¼%
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| Price: | Par
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| Yield: | 8¼%
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| Spread: | 437 bps
|
| First call: | April 15, 2026 at 104.125
|
| Ratings: | Moody's: B3
|
| S&P: BB-
|
| Price talk: | 8¼% area
|
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