Adient Global closed a $1.5 billion term loan A and a $1.5 billion revolving credit facility. The net proceeds are intended to be used to make approximately $3 billion in cash tranfers to Johnson Controls in connection with its spin-off.
The credit facility is part of the financing strategy that Johnson Controls announced for Adient, the automotive seating and interiors business that it plans to spin-off on October 31, 2016.
In addition to the credit facility, Adient intends to offer, subject to market and other conditions, approximately $2 billion aggregate principal amount of dollar-denominated unsecured notes due 2026 and euro-denominated unsecured notes due 2024, through a private offering exempt from the registration requirements of the Securities Act of 1933, as amended.
According to a related 8-K filing, JPMorgan Chase served as administrative agent for the credit facility. Bank of America was syndication agent. Barclays Bank, Citibank, Credit Agricole Corporate and Investment, Wells Fargo, The Bank Of Tokyo-Mitsubishi UFJ, U.S. Bank, Commerzbank Ag, Ing Capital, Unicredit Bank Ag, Intesa Sanpaolo, Goldman Sachs and TD Bank were documentation agents.
Barclays, Citigroup Global Markets and Credit Agricole were joint lead arranges and joint bookrunners.