DETROIT — Adient plc is looking for cash to shore up its balance sheet after it closed operations in North America and Europe during the global COVID-19 outbreak.
The automotive seating supplier on Monday said it plans to raise $500 million in a private offering, using its assets as collateral via a secured note. Adient said it estimates its cash burn is averaging $175 million per month during the crisis.
The $500 million offering stems from the company’s banks decreasing its available credit due to declining value of assets. On March 20, Adient announced it would draw down $825 million of its revolving credit to bolster its cash on hand and would have $2 billion in liquidity. The draw-down portion of its credit has been reduced to $688 million, Adient said on Monday.
On March 23, Adient cut employee salaries by 20 percent in an effort to remain solvent during the crisis. The company did not respond to inquiries concerning how many employees face the cut. The company employed…
