DOW JONES NEWSWIRES Lear Corp. (LEA) is seeking an amendment and waiver under its primary credit facility, citing current and longer-term industry conditions, after fully borrowing against the funds available under its revolving credit pact in the fourth quarter to protect against disruptions in the capital markets.
Lear Chief Executive Bob Rossiter said the company's liquidity is strong but added the company was proactively addressing its capital structure to maintain financial flexibility given the challenging economic environment.
Lear - which has asked Goldman Sachs Group Inc. (GS) to assist with the proposed amendment - had about $1.6 billion in cash and cash equivalents at Dec. 31, which the company said would provide "more than ample" resources to satisfy its business obligations.
The maker of automotive interior systems will attempt to complete the amendment and waiver prior to finalizing its 2008 financial statements.
Last month, Lear withdrew its full-year guidance, citing further weakness in global automotive demand, prompting Moody's Investors Service to cut the company's credit ratings further into junk territory.
At the time, Rossiter said the company was seeing unprecedented weakness in automotive production and added that Lear was "aggressively attacking" its cost structure and proactively managing its liquidity position.
In after-hours trading, Lear shares rose 2% to $2.05 on top of a 14% jump during the regular session.
- Adam Edelman, Dow Jones Newswires; 201-938-5400; adam.edelman@dowjones.com
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Publié le 06 janvier 2009 Copyright © 2009 Dowjones