Lear Corp renews $2 bn credit line, enhancing liquidity through 2030

Rhea-AI Filing Summary

On 24 Jul 2025 Lear Corporation (LEA) entered into a Second Amended & Restated Credit Agreement that extends the maturity of its US$2.0 billion unsecured revolving credit facility to 24 Jul 2030. JPMorgan Chase acts as administrative agent; Bank of America, BNP Paribas, Citibank and HSBC serve as syndication agents.

Borrowings will float over (i) Term Benchmark, Central Bank or Risk-Free Rates or (ii) ABR/Canadian Prime. As of 28 Jun 2025 the applicable pricing grid is 0.925%-1.450% for benchmark-based loans and 0.000%-0.450% for ABR/Prime loans. A quarterly facility fee of 0.075%-0.20% on total commitments applies.

The facility carries customary covenants, including a maximum leverage ratio, limits on fundamental changes, indebtedness and liens. Management states the company is in full covenant compliance as of the signing date. No other financial data or earnings information were provided.

Positive

• Five-year extension of US$2 bn revolver eliminates 2025 refinancing risk and supports long-term liquidity.
• Competitive pricing grid (0.925%-1.450% over benchmark) and low facility fee (0.075%-0.20%) signal strong lender confidence.
• Facility remains unsecured, preserving flexibility over assets and future financing.

Negative

• Dependence on floating-rate debt exposes LEA to interest-rate volatility, potentially raising borrowing costs if rates rise.
• Covenant package includes a maximum leverage test; downturn-driven EBITDA pressure could tighten headroom.

Insights

Corporate Credit Analyst

TL;DR: Five-year maturity extension materially improves liquidity profile with modest pricing; credit-positive for LEA.

Extending the US$2 bn revolver to 2030 removes near-term refinancing risk and secures a competitively priced back-up line for working-capital swings typical in the auto-supplier space. The low facility fee (<0.20%) and narrow spreads (<1.45% over benchmarks) reflect lenders’ confidence in LEA’s credit quality. Covenant set—especially the leverage test—remains standard and the company reports compliance, limiting default risk. Overall, the amendment strengthens LEA’s liquidity without adding secured debt, a credit-positive outcome.

Equity Analyst

TL;DR: Neutral-to-positive for equity; ensures funding flexibility but not immediately earnings-accretive.

The revolver renewal removes a 2025 maturity overhang and provides optionality for share buybacks, capex or bolt-on M&A. Cost of capital impact is negligible given the facility is typically undrawn; however, retaining an unsecured structure preserves asset flexibility. Investors should monitor leverage covenant headroom if end-market demand weakens. Net effect is incremental support for the equity thesis, though not a catalyst in itself.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________ 

FORM 8-K

______________________________________ 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2025

______________________________________ 

LEAR CORPORATION

(Exact name of Registrant as specified in its charter)

______________________________________ 

Delaware			1-11311			13-3386776
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification Number)

21557 Telegraph Road, Southfield, MI 48033

(Address of principal executive offices)

(248) 447-1500

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class			Trading Symbol(s)			Name of Each Exchange on Which Registered
Common stock, par value $0.01			LEA			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Section 1 — Registrant’s Business and Operations

Item 1.01     Entry into a Material Definitive Agreement

On July 24, 2025, Lear Corporation (the “Company”) entered into a second amended and restated credit agreement (the “Second Amended and Restated Credit Agreement”) among the Company, the foreign subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, Bank of America, N.A., BNP Paribas, Citibank, N.A. and HSBC Bank USA, National Association, as syndication agents, and JPMorgan Chase Bank, N.A., as administrative agent. The Second Amended and Restated Credit Agreement extends the maturity of the Company’s $2.0 billion unsecured revolving credit facility (the “Revolving Credit Facility”) to July 24, 2030.

Advances under the Second Amended and Restated Credit Agreement generally bear interest based on (i) Term Benchmark, Central Bank Rate and Risk Free Rate (“RFR”) (in each case, as defined in the Second Amended and Restated Credit Agreement) or (ii) Alternate Base Rate (“ABR”) and Canadian Prime Rate (in each case, as defined in the Second Amended and Restated Credit Agreement). As of June 28, 2025, the ranges and rates are as follows:

						Term Benchmark, Central Bank Rate and RFR Loans																		ABR and Canadian Prime Rate Loans
						Minimum						Maximum						Rate as of June 28, 2025						Minimum						Maximum						Rate as of June 28, 2025
Credit Agreement						0.925		%				1.450		%				1.125		%				0.000		%				0.450		%				0.125		%

A facility fee, which ranges from 0.075% to 0.20% of the total amount committed under the Second Amended and Restated Credit Agreement, is payable quarterly. The Second Amended and Restated Credit Agreement contains various customary representations, warranties and covenants by the Company, including, without limitation, (i) covenants regarding maximum leverage, (ii) limitations on fundamental changes involving the Company or its subsidiaries and (iii) limitations on indebtedness and liens.

As of July 24, 2025, the Company was in compliance with all covenants under the Second Amended and Restated Credit Agreement.

The description of the Second Amended and Restated Credit Agreement set forth above is qualified in its entirety by reference to the Second Amended and Restated Credit Agreement filed as Exhibit 10.1 to the Company’s Periodic Report on Form 10-Q, filed on July 25, 2025, and incorporated by reference into this Current Report on Form 8-K.

Section 9 — Financial Statements and Exhibits

Item 9.01    Financial Statements and Exhibits 

(d)    Exhibits

Exhibit Number						Exhibit Description
10.1						Second Amended and Restated Credit Agreement, dated July 24, 2025, among the Company, the foreign subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, Bank of America, N.A., BNP Paribas, Citibank, N.A. and HSBC Bank USA, National Association, as syndication agents, and JPMorgan Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 to the Company’s Periodic Report on Form 10-Q filed on July 25, 2025).
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

Lear Corporation

July 30, 2025

By:

/s/ Jason M. Cardew

Name:

Jason M. Cardew

Title:

Senior Vice President and Chief Financial Officer

3

FAQ

What did Lear Corporation (LEA) announce in its July 24 2025 8-K?

LEA executed a Second Amended & Restated Credit Agreement extending its US$2 bn unsecured revolver maturity to July 24 2030.

How large is Lear’s renewed revolving credit facility?

The facility size is US$2.0 billion and remains unsecured.

What interest spreads apply to the new LEA credit agreement?

Spreads range 0.925%-1.450% over Term Benchmark/Central Bank/RFR and 0.000%-0.450% over ABR or Canadian Prime.

What fees are associated with Lear’s revolver?

A quarterly facility fee of 0.075%-0.20% of total commitments is payable.

Is Lear Corporation in compliance with its credit covenants?

Yes. The company states it was in full compliance with all covenants as of July 24 2025.

Which banks are leading Lear’s renewed credit facility?

JPMorgan Chase is administrative agent; Bank of America, BNP Paribas, Citibank and HSBC are syndication agents.