Lear Goes Shopping

Lear Corporation, one of the world’s largest automotive interior systems suppliers, today announced the commencement of a cash tender offer for any and all of its outstanding Zero-Coupon Convertible Senior Notes due 2022, issued in February 2002. The tender offer will commence Tuesday, May 16, 2006, and will expire at midnight (Eastern Time) on June 13, 2006, unless extended.
Lear is offering to purchase the convertible notes for cash at a purchase price of $475 per $1,000 principal amount at maturity. Assuming that all of the outstanding convertible notes are tendered in the tender offer, the aggregate amount of cash required for Lear to purchase the tendered notes is estimated to be approximately $304 million. The purchase price will be financed with a portion of the proceeds of Lear’s recently announced new term loan facility. All notes purchased in the tender offer will be retired upon consummation of the tender offer. Payments of the tender consideration for the convertible notes validly tendered and not withdrawn on or prior to the expiration date and accepted for purchase will be made promptly after the expiration date.
Lear Corporation is one of the world’s largest suppliers of automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products. With annual net sales of $17.1 billion, Lear ranks #127 among the Fortune 500. Lear’s products are designed, engineered and manufactured by a diverse team of 115,000 employees at 282 locations in 34 countries.