Jonson Controls Reveals $2 Billion Private Placement And Closing Of Credit Facilities For Adient

Johnson Controls Inc. JCI disclosed key factors of the financing tactics for Adient, the automotive seating and interiors business, which it intends to spin-off on October 31 in the current year. Accordingly, Adient, plans to offer about $2.0 billion unsecured Notes due 2026 and euro-dominated unsecured Notes due 2024 through a private placement.

Johnson Controls indicated the notes would issued by Adient Global Holdings Ltd, its fully owned subsidiary, which would transferred to Adient in connection with the proposed spin-off.

Aside from that, Adient Global Holdings Ltd closed its new senior secured credit facilities consisting of a $1.5 billion term loan A facility and another $1.5 billion revolving credit facility. The company said that the net proceeds of the offering and the new credit facilities would be used to make about $3.0 billion in cash transfers to Johnson Controls in connection with the spin-off. The remaining proceeds would be used by Adient for general corporate purposes.