Oversubscription Leads To A Reworked Lear Deal

Demand allowed the lead banks for Lear Corp. to rework the auto supplier's financing package, moving money into a lower-priced term loan and eliminating the company's second lien all together.

  • 21 Apr 2006
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Demand allowed the lead banks for Lear Corp. to rework the auto supplier's financing package, moving money into a lower-priced term loan and eliminating the company's second lien all together. The deal was also increased by $200 million. The new structure is a six-year, $1 billion term loan priced at LIBOR plus 2 3/4%.

When JPMorgan, Bank of America, Citigroup and Deutsche Bank first brought the financing to the market in early April, it consisted of a $600 million term loan "B" and a $200 million second lien. Price talk was LIBOR plus 3% on the "B" loan and LIBOR plus 4 1/2%-4 3/4% on the second lien (CIN, 4/7).

A Lear spokesman would only say that, "We're pleased that it is being well received."

Prior to the deal being reworked, Standard & Poor's assigned a B+ rating and a 2 recovery rating to the term loan. The ratings agency says the speculative-grade rating reflects the company's distressed operating performance caused by tough industry pressures.

  • 21 Apr 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 3,691 11 20.69
2 Morgan Stanley 2,420 6 13.57
3 Goldman Sachs 2,096 5 11.75
4 BNP Paribas 1,686 6 9.45
5 Barclays 1,565 4 8.77

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 47,881.49 152 10.77%
2 JPMorgan 41,018.47 115 9.23%
3 Wells Fargo Securities 37,061.63 106 8.34%
4 Bank of America Merrill Lynch 33,629.70 107 7.56%
5 Credit Suisse 28,660.69 86 6.45%