Visteon begins tender offer for 8¼% notes; tendering holders must buy new 12¼% notes

By Angela McDaniels

Tacoma, Wash., May 19 - Visteon Corp. began a tender offer for up to $344 million of its 8¼% notes due August 2010 on Monday, according to a company news release.

The company is offering $978.30 for each $1,000 principal amount, which includes a $40.00 early tender premium for notes tendered by 5 p.m. ET on June 2.

Noteholders will also receive accrued interest up to but excluding the settlement date, which is excepted to be June 18.

Each noteholder who tenders must commit to purchase a principal amount of new 12¼% senior notes due Dec. 31, 2016 equal to 60% of the principal amount of notes tendered. The purchase price for the new notes is 91.621.

The new notes will be putable at par on Dec. 31, 2013. Visteon can call the notes prior to Dec. 31, 2013 at par plus a make-whole premium and on or after Dec. 31, 2013 at specified redemption prices.

The tender offer will expire at 11:59 p.m. ET on June 16.

The company said it discussed the terms and conditions of the tender offer and new notes with holders of about $201 million of the 8¼% notes before launching the tender offer. Based on these discussions, Visteon believes these holders plan to tender their notes and purchase the required amount of new notes.

The tender offer is conditioned on the receipt of tenders for at least $300 million of the 8¼% notes and the successful consummation of the concurrent offering of the new 12¼% notes to tendering noteholders.

The tender offer is being made only to noteholders who are qualified institutional buyers and institutional accredited investors inside the United States and to certain non-U.S. investors located outside the United States, the release noted.

Visteon is an automotive supplier based in Van Buren Township, Mich.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.