Adient announces pricing of $795 million of 7.50% senior unsecured notes due 2033
Adient (NYSE: ADNT) has announced the pricing of a private offering of $795 million in 7.50% senior unsecured notes due 2033, issued by its subsidiary Adient Global Holdings The notes will be issued at par value, with the offering expected to close on February 3, 2025.
The company plans to use the net proceeds, along with cash on hand, to redeem its existing 4.875% senior unsecured notes due 2026 and cover associated fees and expenses. The offering is restricted to qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States under Regulation S of the Securities Act.
Adient (NYSE: ADNT) ha annunciato il prezzo di un'offerta privata di 795 milioni di dollari in note senior non garantite al 7,50% in scadenza nel 2033, emesse dalla sua controllata Adient Global Holdings. Le note saranno emesse al valore nominale, con l'offerta che dovrebbe chiudere il 3 febbraio 2025.
La società prevede di utilizzare i proventi netti, insieme ai fondi disponibili, per rimborsare le sue esistenti note senior non garantite al 4,875% in scadenza nel 2026 e per coprire le relative spese e commissioni. L'offerta è riservata agli investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi al di fuori degli Stati Uniti ai sensi del Regolamento S della Securities Act.
Adient (NYSE: ADNT) ha anunciado el precio de una oferta privada de 795 millones de dólares en notas senior no garantizadas al 7,50% con vencimiento en 2033, emitidas por su filial Adient Global Holdings. Las notas se emitirán a su valor nominal, con la oferta que se espera cierre el 3 de febrero de 2025.
La compañía planea utilizar los ingresos netos, junto con el efectivo disponible, para redimir sus notas senior no garantizadas existentes al 4,875% con vencimiento en 2026 y cubrir los costos y gastos asociados. La oferta está restringida a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses fuera de los Estados Unidos bajo la Regulación S de la Ley de Valores.
Adient (NYSE: ADNT)는 7억 9,500만 달러의 7.50% 만기 2033년의 전환사채에 대한 비공식 제공 가격을 발표했습니다. 이 채권은 자회사 Adient Global Holdings에 의해 발행되며, 채권은 액면가로 발행될 예정이며, 제공은 2025년 2월 3일에 종료될 것으로 예상됩니다.
회사는 순수익과 보유 현금을 사용하여 2026년에 만기가 도래하는 기존 4.875%의 전환사채를 매입하고 관련 비용과 수수료를 충당할 계획입니다. 이 제공은 144A 규정에 따라 자격을 갖춘 기관 투자자에게 제한되며, 미국 밖의 비미국인에게는 증권법의 S 규정에 따라 제공됩니다.
Adient (NYSE: ADNT) a annoncé le prix d'une offre privée de 795 millions de dollars en obligations senior non garanties à 7,50% arrivant à échéance en 2033, émises par sa filiale Adient Global Holdings. Les obligations seront émises à leur valeur nominale, et la clôture de l'offre est prévue pour le 3 février 2025.
La société prévoit d'utiliser le produit net, ainsi que les liquidités disponibles, pour racheter ses obligations senior non garanties existantes à 4,875% arrivant à échéance en 2026 et pour couvrir les frais et dépenses associés. L'offre est réservée aux acheteurs institutionnels qualifiés conformément à la règle 144A et aux personnes non américaines en dehors des États-Unis conformément au règlement S de la loi sur les valeurs mobilières.
Adient (NYSE: ADNT) hat die Preise für ein privates Angebot von 795 Millionen Dollar in 7,50 % senioren unbesicherten Anleihen mit Fälligkeit 2033, ausgegeben von seiner Tochtergesellschaft Adient Global Holdings, bekannt gegeben. Die Anleihen werden zum Nennwert ausgegeben, wobei der Abschluss des Angebots für den 3. Februar 2025 erwartet wird.
Das Unternehmen plant, die Nettoeinnahmen zusammen mit vorhandenen Barmitteln zu verwenden, um seine bestehenden 4,875 % senioren unbesicherten Anleihen mit Fälligkeit 2026 zurückzukaufen und die damit verbundenen Gebühren und Ausgaben zu decken. Das Angebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A und an Personen außerhalb der USA gemäß der Regelung S des Wertpapiergesetzes.
- Successful pricing of $795 million notes offering indicates strong market confidence
- Extension of debt maturity from 2026 to 2033 improves long-term debt structure
- Higher interest rate of 7.50% compared to existing 4.875% notes increases interest expenses
- Additional cash on hand required to complete the refinancing
Insights
The pricing of
This refinancing, while expensive, demonstrates proactive liability management by addressing the 2026 maturity wall ahead of schedule. The successful private placement suggests strong institutional confidence in Adient's credit profile, despite the higher rate environment. However, the timing raises questions about management's view of future rate trajectories - they may be locking in rates now to avoid potential further increases or market volatility.
The key implications for investors include: 1) Increased debt service burden affecting free cash flow, 2) Extended maturity profile reducing near-term refinancing risk and 3) Higher fixed costs potentially impacting financial flexibility during industry downturns. This refinancing aligns with broader market trends where companies are accepting higher rates to secure longer-term funding stability.
The Notes offerings are expected to close on February 3, 2025, subject to customary closing conditions.
Adient intends to use the net proceeds from this offering, together with cash on hand, to redeem its existing
The Notes offerings will be made in private transactions in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), only to persons reasonably believed to be "qualified institutional buyers" in accordance with Rule 144A under the Securities Act and to non-
This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities, nor will there be any sale of the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release does not and will not constitute an offer to redeem Adient's existing
About Adient:
Adient (NYSE: ADNT) is a global leader in automotive seating. With 70,000+ employees in 29 countries, Adient operates more than 200 manufacturing/assembly plants worldwide. We produce and deliver automotive seating for all major OEMs. From complete seating systems to individual components, our expertise spans every step of the automotive seat-making process. Our integrated, in-house skills allow us to take our products from research and design to engineering and manufacturing — and into millions of vehicles every year. For more information on Adient, please visit www.adient.com.
Cautionary Statement Regarding Forward-Looking Statements:
Adient has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as "future," "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "will," "would," "could," "can," "may," or similar terms. Forward-looking statements are not guarantees of future performance and Adient's actual results may differ significantly from the results discussed in the forward-looking statements. Adient cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Adient's control, that could cause Adient's actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, the effects of local and national economic, credit and capital market conditions (including the persistence of high interest rates, vehicle affordability and volatile currency exchange rates) on the global economy, automotive vehicle production levels, mix and schedules, as well as the concentration of exposure to certain automotive manufacturers, shifts in market shares among vehicles, vehicle segments or away from vehicles on which Adient has significant content, changes in consumer demand, Adient's joint ventures, volatile energy markets, Adient's ability and timing of customer recoveries for increased input costs, the availability of raw materials and component products (including components required by Adient's customers for the manufacture of vehicles), geopolitical uncertainties such as the
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FAQ
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