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
Email a colleague
Request a PDF

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 BNP Paribas 13,295 25 18.56
2 Bank of America Merrill Lynch (BAML) 8,059 25 11.25
3 Lloyds Bank 6,979 21 9.74
4 Citi 6,256 16 8.73
5 JP Morgan 5,220 8 7.29

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 104,581.71 299 10.92%
2 Bank of America Merrill Lynch 86,347.40 249 9.01%
3 JPMorgan 80,990.39 237 8.46%
4 Wells Fargo Securities 77,934.65 225 8.14%
5 Credit Suisse 63,570.21 165 6.64%