Lear Corporation (LEA - Free Report) has announced the inking of a new credit agreement. The Southfield, MI-based company has entered into an agreement to refinance its existing credit facilities. This move is expected to enhance the financial flexibility of Lear Corporation 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 new credit arrangements include $1.75 billion revolving credit facility and a $250 million term-loan facility. The company has taken these financial steps to extend the maturity date of its existing facilities. Both the revolving credit facility and the term-loan facility are now slated to mature on Aug 8, 2022. The new facilities also contain revised covenants, which will provide Lear Corporation with greater operating flexibility than its earlier credit facility.
Lear Corporation’s shares have gained 2.3% in the last three months, underperforming the 7.5% increase of the industry it belongs to.
Lear Corporation currently carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks are Fox Factory Holding Corp. (FOXF - Free Report) , Cummins Inc. (CMI - Free Report) and Ferrari N.V. (RACE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has a long-term growth rate of 16%.
Cummins has an expected long-term earnings growth rate of 12%.
Ferrari has an expected earnings growth rate of 14.1% in the long run.
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