Lear Stock Price, News & Analysis

Lear Corporation (NYSE: LEA) has initiated a cash tender offer to repurchase up to $200 million of its 3.800% Senior Notes due 2027. The offer will be funded through the issuance of senior unsecured notes due 2032 and 2052. The tender offer is open until December 3, 2021, and aims to manage outstanding debt and extend its average maturity during favorable market conditions. Holders can receive an early tender payment if they submit their notes by November 18, 2021.

Lear Corporation (NYSE: LEA) announced an underwritten public offering of senior unsecured notes due 2032 and 2052. The net proceeds are intended to repay a $206.3 million term loan due August 8, 2022, and to purchase up to $200 million of 3.800% Senior Notes due 2027. Remaining funds may be used for the acquisition of Kongsberg Automotive's Interior Comfort Systems business unit and other corporate purposes. The offer is subject to market conditions and will be managed by BofA Securities, Citigroup, and HSBC.

Lear Corporation (NYSE: LEA) reported a 13% decrease in Q3 2021 sales to $4.3 billion, impacted by semiconductor shortages. Net income was $(27) million, versus $174 million in Q3 2020, with adjusted earnings per share of $0.53, down from $3.73. Despite these challenges, Lear outperformed the market by 9 percentage points in sales growth. The company announced plans to acquire Kongsberg Automotive's Interior Comfort Division for €175 million, enhancing its product offerings. Lear also increased its credit facility to $2 billion, aiming for financial flexibility.

On November 1, 2021, Lear Corporation (NYSE: LEA) announced a joint venture with Shinry Technologies Co. Ltd., a leading Chinese supplier of electric vehicle electronics. The venture, expected to be finalized within Q4 2021, will focus on integrating advanced onboard vehicle chargers and multifunction integrated power modules. This collaboration aims to enhance capabilities in the electric vehicle market, addressing the need for efficient charging solutions. The partnership is designed to support Lear's growth strategy in electric vehicles and capitalize on Shinry's innovative R&D.

Lear Corporation (NYSE: LEA) announced a refinancing agreement for its credit facility, extending its maturity from August 2024 to October 2026. The facility's size increased from $1.75 billion to $2.0 billion. This refinancing aims to enhance financial flexibility and leverage favorable market conditions. Major banks involved include JPMorgan Chase, BofA Securities, Barclays, Citibank, and HSBC. The company emphasizes that the statements in the release are forward-looking, subject to various risks including industry production volumes and supply chain disruptions.

Lear Corporation (NYSE: LEA) announced its acquisition of Kongsberg Automotive's Interior Comfort Systems (ICS) business for €175 million. This strategic move aims to enhance Lear's vertical integration and diversify its product offerings in comfort seating solutions, catering to rising automotive demands for features like lumbar support and seat ventilation. The ICS unit is expected to generate approximately $300 million in revenue this year and includes over 3,800 employees globally. The deal is anticipated to close in Q1 2022, subject to regulatory approvals.

Lear Corporation (NYSE: LEA), a leader in automotive technology, is set to hold a conference call on November 2, 2021, at 8:30 a.m. EDT to discuss its third quarter 2021 financial results. Participants can join the call using toll-free number 877-883-0383 or 412-902-6506 for international calls, with the conference code 4615282. A live audio webcast will also be available on their Investor Relations website, along with a slide presentation prior to the call.