Milwaukee, Wisconsin — Adient, the automotive seating business to be spun-off from Johnson Controls in October, has started to build its capital structure.
Adient builds capital structure
Johnson Controls said that it is starting discussions with lenders and is aiming to set the new firm up with $3.5bn in debt made up of $2bn in bonds and $1.5bn five-year loan. The spin-off is also aiming for a $1.5bn revolving credit facility. Adient's chairman and ceo Bruce McDondald said his firm will be "well positioned for long-term success given its strong market position and ability to generate cash."
Johnson Controls, which announced plans to spin off Adient in January, expects to finalise the credit agreement in the third quarter of 2016.