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PLYMOUTH, Mich. - Adient (NYSE: NYSE:ADNT), a major player in the automotive seating industry with a market capitalization of $1.52 billion, announced today its intention to offer $795 million in new senior unsecured notes due in 2033 through its subsidiary, Adient Global Holdings Ltd. The private offering comes as the company’s stock has experienced a significant decline of 29% over the past six months. The private offering is contingent on market conditions and other standard factors.
The company aims to use the proceeds from the note offering, along with its available cash, to redeem its existing 4.875% senior unsecured notes that are due in 2026 and to cover related fees and expenses. According to InvestingPro data, Adient currently maintains total debt of $2.63 billion while generating strong free cash flow, with a notable yield of 22%. This strategic financial move is intended to manage the company’s debt profile effectively by taking advantage of the current market conditions to refinance its obligations.
Adient’s offering targets qualified institutional buyers in accordance with Rule 144A under the Securities Act and non-U.S. persons outside the United States under Regulation S. These notes will not be registered under the Securities Act or any state securities laws and will not be offered or sold in the U.S. without registration or an applicable exemption from the registration requirements.
With over 70,000 employees across 29 countries and more than 200 manufacturing and assembly plants worldwide, Adient is a global force in automotive seating, delivering products for all major original equipment manufacturers (OEMs). The company’s expertise covers the entire process from research and design to engineering and manufacturing, and ultimately, into millions of vehicles annually. InvestingPro analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors interested in the automotive sector.
This press release contains forward-looking statements, which are based on current expectations and involve various risks and uncertainties that could cause actual results to differ materially from those anticipated. InvestingPro subscribers have access to 8 additional key insights about Adient, including detailed analysis of its financial health, valuation metrics, and growth prospects through comprehensive Pro Research Reports available for over 1,400 US stocks.
The information provided in this article is based on a press release statement issued by Adient.
In other recent news, Adient, the global automotive seating supplier, reported mixed financial results for the first quarter of 2025. The company’s earnings fell short of analyst estimates, with adjusted earnings per share of $0.27, missing the consensus of $0.31 by $0.04. However, its quarterly revenue of $3.5 billion surpassed the consensus estimate of $3.44 billion. Adient’s adjusted EBITDA for the quarter was $196 million, in line with expectations due to lower customer production during the period.
In the face of these results, CFRA has cut Adient’s stock price target to $14 and maintained a Sell rating. The firm cited concerns about Adient’s financial position, which shows a net debt of $1.54 billion and an anticipated free cash flow of only $180 million for fiscal year 2025.
In other developments, Adient revised its guidance for fiscal year 2026, lowering net sales projections to approximately $13.9 billion and adjusted EBITDA to $850 million. The company attributes this to lower sales due to exchange rates and anticipated volume declines in the EMEA and China regions. Despite these challenges, Adient’s leadership maintains focus on operational efficiency and strategic growth initiatives.
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