Viasystems seeks to amend 7 7/8% notes to sell $50 million more notes

By Susanna Moon

Chicago, April 1 - Viasystems Group, Inc. said wholly owned subsidiary Viasystems, Inc. began a consent solicitation to amend its $550 million of outstanding 7 7/8% senior secured notes due 2019.

Viasystems is seeking consents to amend the notes to permit the company to issue $50 million of senior secured notes. The new notes would have terms substantially identical to the terms of the 7 7/8% notes, according to a company press release.

The amendment requires the consent of holders of at least a majority of the outstanding notes voting as a single class, the company said.

The consent solicitation ends at 5 p.m. ET on April 9. Holders must be of record as of 5 p.m. ET on March 31.

The consent fee is $2.50 in cash per $1,000 principal amount of notes.

Payment of the consent fee will be conditioned on receiving the required consents in the solicitation and completion of the proposed financing.

Proceeds of the new issue would be used for general corporate purposes, including to supplement the company's short-term cash on hand while the company "aggressively pursues to recover its losses related to the September 2012 fire in its Guangzhou manufacturing facility from its insurer," the release noted.

Wells Fargo Securities, LLC (866 309-6316) and Stifel, Nicolaus & Co., Inc. (855 300-7142) are the solicitation agents. D.F. King & Co., Inc. (800 290-6427) is the information and tabulation agent.

St. Louis-based Viasystems makes circuit boards and electro-mechanical solutions.

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