By Ryan Beene, Crain's Detroit Business
Detroit, Michigan -- Lear Corp. plans to raise about $700 million through two separate bond offerings to help pay off about $925 million in existing debt.
The $925 million constitutes Lear's first- and second-lien credit facilities obtained during its four-month Chapter 11 bankruptcy reorganisation, from which it emerged last November.
Lear plans to use the bond proceeds and about $225 million of its $1600 million in cash and equivalents to pay off the liens, clearing the way for it to potentially pay future dividend on its common stock.
Lear cfo Matt Simoncini said the transactions that would rid the company of the $925 million in debt gives Lear "solidly investment grade" statistics.
Lear said last week it planned to raise at least $350 million by selling bonds to help pay off its second lien. But conditions in the bond market improved since last week allowing Lear to increase the size of its offering and pay off both liens, Simoncini said.
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