Visteon seeks $100 million to $200 million term loan add-on

By Sara Rosenberg

New York, Nov. 15 - Visteon Corp. is looking to raise a $100 million to a $200 million secured term loan add-on, according to a market source.

JPMorgan and Citigroup are the lead arrangers on the deal, with JPMorgan the administrative agent.

This add-on transaction will not be formally launched with a conference call or a bank meeting, but rather the information was simply put out in the public space for people to respond, the source said.

The incremental term loan debt will be priced in line with the existing $800 million seven-year term loan at Libor plus 300 basis points, the source added.

Proceeds from the add-on will be used to further enhance the company's liquidity as it executes its three-year plan.

Under the current loan agreement, there is a $100 million accordion feature. If Visteon raises more than $100 million with this transaction, it will seek required lender approvals under the term loan and its $350 million U.S. asset-based revolving credit facility.

Visteon is a Van Buren Township, Mich., automotive parts supplier.

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