LEAR CORPLEA
LEAR CORP Debt Disclosure
Debt
Short-Term Borrowings
The Company utilizes uncommitted lines of credit as needed for its short-term working capital fluctuations. As of December 31, 2025 and 2024, the Company had lines of credit from banks totaling $382.5 million and $342.5 million, respectively. As of December 31, 2025 and 2024, the Company had short-term debt balances outstanding related to draws on its lines of credit of $27.9 million and $26.7 million, respectively.
Long-Term Debt
A summary of long-term debt, net of unamortized debt issuance costs and unamortized original issue premium (discount) and the related weighted average interest rates is shown below (in millions):
| December 31, | 2025 | ||||||||||||||||||||||||||||
| Debt Instrument | Long-Term Debt | Unamortized Debt Issuance Costs | Unamortized Original Issue Premium (Discount) | Long-Term Debt, Net | Weighted Average Interest Rate | ||||||||||||||||||||||||
| Delayed-Draw Term Loan Facility (the "Term Loan") | $ | 50.0 | $ | — | $ | — | $ | 50.0 | 4.772% | ||||||||||||||||||||
3.8% Senior Notes due 2027 (the "2027 Notes") | 550.0 | (0.7) | (0.7) | 548.6 | 3.885% | ||||||||||||||||||||||||
4.25% Senior Notes due 2029 (the "2029 Notes") | 375.0 | (1.1) | (0.4) | 373.5 | 4.288% | ||||||||||||||||||||||||
3.5% Senior Notes due 2030 (the "2030 Notes") | 350.0 | (1.2) | (0.3) | 348.5 | 3.525% | ||||||||||||||||||||||||
2.6% Senior Notes due 2032 (the "2032 Notes") | 350.0 | (1.9) | (0.5) | 347.6 | 2.624% | ||||||||||||||||||||||||
5.25% Senior Notes due 2049 (the "2049 Notes") | 625.0 | (5.2) | 11.7 | 631.5 | 5.103% | ||||||||||||||||||||||||
3.55% Senior Notes due 2052 (the "2052 Notes") | 350.0 | (3.4) | (0.5) | 346.1 | 3.558% | ||||||||||||||||||||||||
| Other | 69.4 | — | — | 69.4 | N/A | ||||||||||||||||||||||||
| $ | 2,719.4 | $ | (13.5) | $ | 9.3 | 2,715.2 | |||||||||||||||||||||||
| Less — Current portion | (3.7) | ||||||||||||||||||||||||||||
| Long-term debt | $ | 2,711.5 | |||||||||||||||||||||||||||
| December 31, | 2024 | ||||||||||||||||||||||||||||
| Debt Instrument | Long-Term Debt | Unamortized Debt Issuance Costs | Unamortized Original Issue Premium (Discount) | Long-Term Debt, Net | Weighted Average Interest Rate | ||||||||||||||||||||||||
| Term Loan | $ | 100.0 | $ | (0.3) | $ | — | $ | 99.7 | 5.835% | ||||||||||||||||||||
2027 Notes | 550.0 | (1.2) | (1.1) | 547.7 | 3.885% | ||||||||||||||||||||||||
2029 Notes | 375.0 | (1.4) | (0.5) | 373.1 | 4.288% | ||||||||||||||||||||||||
2030 Notes | 350.0 | (1.5) | (0.4) | 348.1 | 3.525% | ||||||||||||||||||||||||
| 2032 Notes | 350.0 | (2.2) | (0.6) | 347.2 | 2.624% | ||||||||||||||||||||||||
| 2049 Notes | 625.0 | (5.4) | 12.2 | 631.8 | 5.103% | ||||||||||||||||||||||||
| 2052 Notes | 350.0 | (3.5) | (0.5) | 346.0 | 3.558% | ||||||||||||||||||||||||
| Other | 41.9 | — | — | 41.9 | N/A | ||||||||||||||||||||||||
| $ | 2,741.9 | $ | (15.5) | $ | 9.1 | 2,735.5 | |||||||||||||||||||||||
| Less — Current portion | (2.2) | ||||||||||||||||||||||||||||
| Long-term debt | $ | 2,733.3 | |||||||||||||||||||||||||||
Senior Notes
The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes, 2032 Notes, 2049 Notes and 2052 Notes (collectively, the "Notes") are shown below:
| Note | Issuance Date | Maturity Date | Interest Payment Dates | |||||||||||||||||
| 2027 Notes | August 2017 | September 15, 2027 | March 15 and September 15 | |||||||||||||||||
| 2029 Notes | May 2019 | May 15, 2029 | May 15 and November 15 | |||||||||||||||||
| 2030 Notes | February 2020 | May 30, 2030 | May 30 and November 30 | |||||||||||||||||
| 2032 Notes | November 2021 | January 15, 2032 | January 15 and July 15 | |||||||||||||||||
| 2049 Notes | May 2019 and February 2020 | May 15, 2049 | May 15 and November 15 | |||||||||||||||||
| 2052 Notes | November 2021 | January 15, 2052 | January 15 and July 15 | |||||||||||||||||
2027 Notes Issued in 2017
Prior to June 15, 2027, the Company, at its option, may redeem the 2027 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof, plus a "make-whole" premium as of, and accrued and unpaid interest to, the redemption date. On or after June 15, 2027, but prior to the maturity date of September 15, 2027, the Company, at its option, may redeem the 2027 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to the redemption date.
2029 Notes Issued in 2019
Prior to February 15, 2029, the Company, at its option, may redeem the 2029 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof, plus the applicable premium, if any, as of, and accrued and unpaid interest to, but not including, the redemption date. On or after February 15, 2029, the Company, at its option, may redeem the 2029 Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days' prior notice, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date.
2049 Notes Issued in 2019 and 2020
Prior to November 15, 2048, the Company, at its option, may redeem the 2049 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof, plus the applicable premium, if any, as of, and accrued and unpaid interest to, but not including, the redemption date. On or after November 15, 2048, the Company, at its option, may redeem the 2049 Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days' prior notice, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date.
2030 Notes Issued in 2020
Prior to February 28, 2030, the Company, at its option, may redeem the 2030 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof, plus the applicable premium, if any, as of, and accrued and unpaid interest to, but not including, the redemption date. On or after February 28, 2030, the Company, at its option, may redeem the 2030 Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days' prior notice, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date.
2032 Notes and 2052 Notes Issued in 2021
Prior to October 15, 2031, the Company, at its option, may redeem the 2032 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof, plus the applicable premium, if any, as of, and accrued and unpaid interest to, but not including, the redemption date. On or after October 15, 2031, the Company, at its option, may redeem the 2032 Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days' prior notice, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date.
Prior to July 15, 2051, the Company, at its option, may redeem the 2052 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof, plus the applicable premium, if any, as of, and accrued and unpaid interest to, but not including, the redemption date. On or after July 15, 2051, the Company, at its option, may redeem the 2052 Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days' prior notice, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date.
Covenants
Subject to certain exceptions, the indentures governing the Notes contain restrictive covenants that, among other things, limit the ability of the Company to: (i) create or permit certain liens and (ii) consolidate, merge or sell all or substantially all of the Company's assets. The indentures governing the Notes also provide for customary events of default. As of December 31, 2025, the Company was in compliance with all covenants under the indentures governing the Notes.
Credit Agreement
In July 2025, the Company amended and restated its unsecured credit agreement (the "Credit Agreement") to extend the maturity date to July 24, 2030. The Credit Agreement consists of a $2.0 billion revolving credit facility (the "Revolving Credit Facility"). In connection with this transaction, the Company recognized a loss on the extinguishment of debt of $0.3 million, which is included in other expense, net in the accompanying consolidated statement of income for year ended December 31, 2025, and incurred related issuance costs of $3.2 million, which are included in other financing activities in the accompanying consolidated statement of cash flows for the year ended December 31, 2025.
In 2025, 2024 and 2023, there were no borrowings or repayments under the Revolving Credit Facility. As of December 31, 2025 and 2024, there were no borrowings outstanding under the Revolving Credit Facility.
Advances under the Revolving Credit Facility generally bear interest based on (i) Term Benchmark, Central Bank Rate and Risk Free Rate ("RFR") (in each case, as defined in the Credit Agreement) or (ii) Alternate Base Rate ("ABR") and Canadian Prime Rate (in each case, as defined in the Credit Agreement). As of December 31, 2025, the ranges and rates are as follows (in percentages):
| Term Benchmark, Central Bank Rate and RFR Loans | ABR and Canadian Prime Rate Loans | |||||||||||||||||||||||||||||||||||||
| Minimum | Maximum | Rate as of December 31, 2025 | Minimum | Maximum | Rate as of December 31, 2025 | |||||||||||||||||||||||||||||||||
| Credit Agreement | 0.925 | % | 1.450 | % | 1.125 | % | 0.000 | % | 0.450 | % | 0.125 | % | ||||||||||||||||||||||||||
The facility fee, which ranges from 0.075% to 0.20% of the total amount committed under the Revolving Credit Facility, is payable quarterly.
Covenants
The Credit Agreement contains various customary representations, warranties and covenants by the Company, including, without limitation, (i) covenants regarding maximum leverage, (ii) limitations on fundamental changes involving the Company or its subsidiaries and (iii) limitations on indebtedness and liens. As of December 31, 2025, the Company was in compliance with all covenants under the Credit Agreement.
Term Loan
As of December 31, 2025 and 2024, the Company had $50.0 million and $100.0 million, respectively, outstanding under its unsecured delayed-draw term loan facility (the "Term Loan"). In June 2025, the Company amended the Term Loan to extend the maturity date to September 30, 2027, and reduce the pricing across the grid. In connection with this transaction, the Company recognized a loss on the extinguishment of debt and incurred related issuance costs totaling $0.5 million, which is included in other expense, net in the accompanying consolidated statement of income for the year ended December 31, 2025.
In both 2025 and 2024, the Company made principal payments under the Term Loan of $50.0 million.
Advances under the Term Loan generally bear interest based on the Daily or Term SOFR (as defined in the Term Loan agreement) plus a margin determined in accordance with a pricing grid that ranges from 0.875% to 1.375%. As of December 31, 2025, the interest rate was 4.772%.
Covenants
The Term Loan contains the same covenants as the Credit Agreement. As of December 31, 2025, the Company was in compliance with all covenants under the Term Loan.
Other
As of December 31, 2025 and 2024, other long-term debt, including the current portion, consisted of amounts outstanding under unsecured working capital loans and finance lease agreements.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.