) declared the pricing of senior unsecured notes worth $500
million due in Jan 15, 2023 with a coupon of 4.75%. The sale of
the notes is expected to close on Jan 17, 2013, subject to
customary closing conditions.
JOHNSON CONTROL (JCI): Free Stock Analysis
LEAR CORPORATN (LEA): Free Stock Analysis
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The offering will be made to qualified institutional buyers in
the U.S. according to Rule 144A under the Securities Act of 1933.
Outside the U.S. the offerings will be made in accordance with
Regulation S of the Securities Act of 1933.
The proceeds from this offering together with other liquidity
sources of the company will be utilized to purchase $70 million
worth of existing notes in 2013 together with investments in
additional component capabilities and emerging markets. It will
also be used for share repurchase under the common stock share
repurchase program and for general corporate purposes.
Standard & Poor's Ratings Services has raised its corporate
credit rating on Lear to 'BB+' from 'BB' and assigned 'BB' rating
to Lear's proposed $500 million senior unsecured debt offering.
The rating agency also assigned 'BBB' and '1' recovery rating on
the company's senior secured revolving credit facility. The
rating service has a stable outlook based on the improved free
cash flow of the company.
Lear posted a 19% increase in adjusted earnings per share to
$1.29 in the third quarter of 2012 from $1.23 earned in the
corresponding quarter last year. The profits surpassed the Zacks
Consensus Estimate by 9 cents per share. In absolute terms,
profits improved 11.3% to $127.2 million compared with $114.3
million in the year-ago quarter.
Revenues increased by 2% to $3.5 billion in the reported quarter,
due to 2% increase in global industry production, partially
offset by depressing business condition in Europe. Production in
Europe declined 7% during the quarter.
Lear Corporation designs, manufactures, assembles, and supplies
automotive seat systems, electrical distribution systems, and
related components primarily to automotive original equipment
manufacturers. The company sells its products chiefly in North
America, South America, Europe, and Asia.
The company competes with
Johnson Controls Inc.
). Currently, it retains a Zacks Rank #3 (Hold).