Lear Amends, Restates Credit Agreement

(RTTNews) - Auto parts maker Lear Corp. (LEA) said Friday that it has amended and restated its existing credit agreement to increase aggregate commitments under its revolving credit facility to $1.25 billion and to establish a $500 million delayed draw term loan facility.

The company said it initiated the financing actions to increase its financial flexibility and take advantage of attractive market conditions in anticipation of the closing of its pending $850 million acquisition of automotive leather supplier Eagle Ottawa.

The Eagle Ottawa acquisition is expected to close in the first quarter of 2015.

The maturity of the revolving credit facility has been extended to November 14, 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, the company said.