Lear has announced that it has amended and restated its existing credit agreement to increase aggregate commitments under its revolving credit facility to US$1.25bn and to establish a $500m delayed draw term loan facility.
Lear says it initiated these financing actions to increase its financial flexibility and take advantage of attractive market conditions in anticipation of the closing of its previously announced acquisition of Eagle Ottawa. The Eagle Ottawa acquisition is expected to close in the first quarter of 2015 subject to customary conditions, including regulatory approvals.
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The maturity of the revolving credit facility has been extended to 14 November 2019, and the term loan will mature five years from the initial funding date thereof. In addition, the amended and restated credit agreement contains revised covenants, providing Lear with greater operating flexibility than its previous credit facility.
“We were able to capitalise on favourable market conditions to increase our financial flexibility and liquidity, allowing us to continue investing in the growth of our business and create value for our shareholders,” said Matt Simoncini, Lear’s president and CEO.
