Published on 3/23/2010 in the Prospect News High Yield Daily.
New Issue: Lear Corp prices $700 million offering of eight-year and 10-year notes
By Paul Deckelman
New York, March 23 - Lear Corp. priced a $700 million two-part offering of eight- and 10-year senior notes (B1/BB-) on Tuesday, high yield syndicate sources said.
Lear priced $350 million of 7 7/8% notes due 2018 at 99.276 to yield 8%, and priced $350 million of 8 1/8% notes due 2020 at 99.164 to yield 8¼%.
The deal was heard to have priced well after trading had wound down for the day. No price talk was heard before pricing.
The quickly shopped issue came to market just a day after the Southfield, Mich.-based automotive components company disclosed its plans for a an underwritten public bond offering in a shelf registration statement filed with the Securities and Exchange Commission.
Citigroup Global Markets, Inc., J.P. Morgan Securities Inc., Barclays Capital Inc. and UBS Securities LLC were joint bookrunners for the offering. HSBC Securities (USA) Inc. was co-manager on the deal.
Lear said that it plans to use the net proceeds from the bond offering, along with cash and cash equivalents, to repay in full $375 million outstanding under its first-lien credit facility and $550 million outstanding under its second-lien credit facility.
| Issuer: | Lear Corp.
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets, Inc., J.P. Morgan Securities Inc., Barclays Capital Inc. and UBS Securities LLC
|
| Co-manager: | HSBC Securities (USA) Inc.
|
| Change-of -control: | Put at 101% of principal plus accrued interest
|
| Trade date: | March 23 |
|
| Settlement date: | March 26
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered public offering |
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $350 million
|
| Proceeds: | $347.466 million
|
| Maturity: | March 15, 2018
|
| Coupon: | 7 7/8%
|
| Price: | 99.276
|
| Yield: | 8%
|
| Spread: | 470 basis points
|
| Call features: | Make-whole call at T+50 bps until March 15, 2014, then callable at 103.938, callable on or after March 15, 2015 at 101.969, and finally callable at par on or after March 15, 2016.
|
| Equity clawback: | For up to 35% of issue at 107.875% until March 15, 2013
|
|
|
|
|
| Ten-year notes
|
| Amount: | $350 million
|
| Proceeds: | $347.074 million
|
| Maturity: | March 15, 2020
|
| Coupon: | 8 1/8%
|
| Price: | 99.164
|
| Yield: | 8 ¼%
|
| Spread: | 457 basis points
|
| Call features: | Make-whole call at T+50 bps until March 15, 2015, then callable at 104.063, callable on or after March 15, 2016 at 102.708, callable on or after March 15, 2017 at 101.354, and finally callable at par on or after March 15, 2018.
|
| Equity clawback: | For up to 35% of issue at 108.125% until March 15, 2013
|
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