Adient closes on financing for spin-off

Approximately $2 billion in notes issued

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Adient, the planned spin-off of Johnson Controls Inc.’s automotive seating and interiors business, closed on its offering of approximately $2 billion in notes to support the move, Glendale-based Johnson Controls announced Friday.

Adient will be a leading producer of seating system when it is spun off from Johnson Controls.
Adient will be a leading producer of seating systems when it is spun off from Johnson Controls.

The notes were issued by Adient Global Holdings Ltd, a subsidiary of Johnson Controls, and will be transferred to Adient in connection with the planned spin-off on Oct. 31. The new proceeds will be used to make cash transfers to Johnson Controls, with remaining money used for general corporate purposes.

The offering included $900 million in dollar-denominated unsecured notes due in 2026 and €1 billion in Euro-denominated unsecured notes due in 2024. U.S. Bank National Association acted as trustee for both offerings. Elavon Financial Services DAC, UK Branch was the paying agent and Elavon Financial Services DAC was the transfer agent and registrar on the Euro notes.

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Adient is one step closer to becoming an independent company with the closure of the financing. Johnson Controls announced plans last year to spin off its automotive seating business. The company announced a merger with Ireland-based Tyco International plc in January and said at the time Adient would be spun-off after the merger was complete.

Shareholders of Johnson Controls and Tyco International approved the merger last week, also moving the Adient spin-off closer to reality. Johnson Controls executives have said Adient has been operating independently within the company since earlier this summer.

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