Johnson Controls : Adient Initiates Talks With Lenders To Secure Financing

(RTTNews) - Johnson Controls (JCI) announced that Adient, the automotive seating and interiors business that it plans to spin off in October, initiates discussions with lenders as it takes its first steps in securing its capital structure.

Adient targets $3.5 billion in gross debt, consisting of $2 billion in bonds and a $1.5 billion five-year term loan. In addition, the company is targeting a $1.5 billion revolving credit facility.

Adient anticipates that the closing of the new credit facility will occur during the third calendar quarter of 2016. Completion of Adient's spin-off from Johnson Controls is subject to a number of conditions, including, among others, effectiveness of Adient's Form 10 registration statement and other customary conditions.

The spin-off remains subject to final approval of the Johnson Controls Board of Directors.