Lear Receives $1B Revolving Credit Line, Raises Buyback Plan to $1.5B; Reaffirms FY12, Offers FY13 Guidance

Lear Corporation (NYSE: LEA),a leading global supplier of automotive seating and electrical distributionsystems, today launched financing actions to increase liquidity and announcedan increase in its existing share repurchase program authorization.  Theseactions are expected to improve the Company's financial flexibility, extenddebt maturities and significantly increase cash returned to shareholders overthe next three years.  In addition, the Company affirmed its earnings outlookfor 2012 and issued its financial outlook for 2013.The financing actions include the launch of an offering of $500 million insenior unsecured notes due 2023 and a new $1 billion revolving line of credit,which will replace the Company's existing $500 million facility.  The finalterms of the bond offering will depend upon market conditions and otherfactors.  With respect to the revolving line of credit, the Company presentlyhas commitments for the vast majority of the $1 billion facility and expectsto complete the transaction by the end of January. Combined, the proposed financing actions will increase the Company's liquidityby approximately $1 billion.  The Company intends to use this liquidity forgeneral corporate purposes, including the redemption of $70 million inaggregate principal amount of our existing notes during 2013, investments inadditional component capabilities and emerging markets and share repurchasesunder our common stock share repurchase program.The Company also announced that it is increasing its existing share repurchaseprogram authorization by $800 million to $1.5 billion and extending theauthorization until January 10, 2016.  As of December 31, 2012, the Companyhas repurchased $502 million of its shares.  The new repurchase programprovides for future share repurchases of approximately $1 billion, including$198 million available under the previous program.Lear expects 2012 net sales of approximately $14.5 billion, core operatingearnings in the range of $745 to $785 million, adjusted capital spending ofapproximately $435 million, free cash flow of approximately $275 million andadjusted net income attributable to Lear of $520 to $560 million.  For 2013,Lear expects net sales of $15.0 to $15.5 billion, core operating earnings inthe range of $725 to $775 million, adjusted capital spending of approximately$450 million, free cash flow of approximately $275 million and adjusted netincome attributable to Lear of $420 to $455 million.  Lear's financial outlookis based on forecasted global industry vehicle production of 79 million unitsin 2012 and 81 million units in 2013.  In addition, the Company expectsmargins to improve in 2014 and 2015.