Lear Announces Pricing for $900 Million in Senior Notes
SOUTHFIELD, Mich., Nov. 21 /PRNewswire-FirstCall/ -- Lear Corporation (NYSE:
LEA), one of the world's largest automotive suppliers, today announced
it has priced the offering of $900 million in new senior notes. This
offering is an increase of $200 million from the $700 million offering
amount previously announced by Lear.
The $900 million offering includes $300 million in senior notes due
2013 and $600 million in senior notes due 2016. The notes will be
senior unsecured obligations of the company. The $300 million of
seven-year notes will be sold at par and will bear interest at a rate of
8.50%. The $600 million of ten- year notes will be sold at par and
will bear interest at a rate of 8.75%. The financing is scheduled to
close on November 24, 2006.
These new notes will be purchased by Citigroup Global Markets Inc.
and are expected to be eligible for resale under Rule 144A of the
Securities Act of 1933.
Lear intends to use the net proceeds from this offering to pre-fund
the repayment or repurchase of any and all of Lear's outstanding 8.125%
senior notes due 2008 and a substantial portion of the outstanding 8.11%
senior notes due 2009.
This news release is not an offer to purchase, nor a solicitation of
an offer to sell, any securities. The notes have not been registered
under the Securities Act of 1933, as amended, or applicable state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws.
Lear Corporation is one of the world's largest suppliers of
automotive interior systems and components. Lear provides complete seat
systems, electronic products and electrical distribution systems and
other interior products. With annual net sales of $17.1 billion in
2005, Lear ranks #127 among the Fortune 500. Lear's world-class
products are designed, engineered and manufactured by a diverse team of
111,000 employees at 286 locations in 34 countries. Lear's headquarters
are in Southfield, Michigan, and Lear is traded on the New York Stock
Exchange under the symbol [LEA]. Further information about Lear is
available on the Internet at http://www.lear.com/ .
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from anticipated results as a result of
certain risks and uncertainties, including but not limited to: general
economic conditions in the markets in which the Company operates,
including changes in interest rates; fluctuations in the production of
vehicles for which the Company is a supplier; labor disputes involving
the Company or its significant customers or suppliers or that otherwise
affect the Company; the Company's ability to achieve cost reductions
that offset or exceed customer-mandated selling price reductions; the
outcome of customer productivity negotiations; the impact and timing of
program launch costs; the costs and timing of facility closures,
business realignment or similar actions; increases in the Company's
warranty or product liability costs; risks associated with conducting
business in foreign countries; competitive conditions impacting the
Company's key customers and suppliers; raw material costs and
availability; the Company's ability to mitigate the significant impact
of recent increases in raw material, energy and commodity costs; the
outcome of legal or regulatory proceedings to which the Company is or
may become a party; unanticipated changes in cash flow, including the
Company's ability to align its vendor payment terms with those of the
Company's customers; the finalization of the Company's restructuring
strategy; the outcome of negotiations with respect to the Company's
North American Interior segment; and other risks described from time to
time in the Company's Securities and Exchange Commission filings. In
addition, no assurances can be given that the Company's private offering
of senior notes or the tender offer referred to in this news release
will be completed on the terms contemplated or at all.
The forward-looking statements in this press release are made as of
the date hereof, and the Company does not assume any obligation to
update, amend or clarify them to reflect events, new information or
circumstances occurring after the date hereof.
SOURCE: Lear Corporation
CONTACT: Investor/Media Contact: Mel Stephens, +1-248-447-1624,
Contact: Ed Lowenfeld, +1-248-447-4380, both of Lear
Web site: http://www.lear.com/
Company News On-Call: http://www.prnewswire.com/comp/518304.html
Posted on 11/21/2006