Lear Corporation (NYSE:LEA) has announced the closing of the earlier-announced offering of $750 million aggregate principal amount of 3.80% senior unsecured notes. For the Southfield, MI-based company, this move is expected to boost the financial flexibility and position it well to take advantage of conducive market conditions.
Lear Corporation is a leading global supplier of automotive seating systems, electrical distribution systems and electronics. The company utilized the net proceeds generated from the refinancing transactions for redeeming $500 million senior unsecured notes due 2023, lowering the borrowings under the term-loan facility by around $200 million, for paying fees and expenses in relation to the refinance transactions and for general corporate purposes. This has given a boost to the financial flexibility of the company.
The closing of the refinance transaction follows the completion of a new $2 billion credit agreement announced on Aug 8, 2017. The new credit arrangements include $1.75 billion revolving credit facility and a $250 million term-loan facility.
Lear Corporation’s shares have lost 2.3% in the last three months, underperforming the 4.9% increase of the industry it belongs to.
Lear Corporation currently carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks are Ferrari N.V. (NYSE:RACE) , Fox Factory Holding Corp. (NASDAQ:FOXF) and Cummins Inc. (NYSE:CMI) . While Ferrari N.V. sports a Zacks Rank #1 (Strong Buy), both Fox Factory Holding and Cummins carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ferrari has an expected earnings growth rate of 14.1% in the long run.
Fox Factory has a long-term growth rate of 16%.
Cummins has an expected long-term earnings growth rate of 12%.
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Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report
Lear Corporation (LEA): Free Stock Analysis Report
Ferrari N.V. (RACE): Free Stock Analysis Report
Cummins Inc. (CMI): Free Stock Analysis Report
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