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Visteon issues $206.39 million of 12¼% notes in connection with tender offer for 8¼% notes
By Angela McDaniels
Tacoma, Wash., June 17 - Visteon Corp. said it accepted tenders for $344 million of its $550 million 8¼% senior notes due 2010 during a tender offer that ended at 11:59 p.m. ET on Monday and will issue $206.39 million of new 12¼% senior notes due Dec. 31, 2016 on Wednesday in connection with the offer.
The company began a tender offer for up to $344 million of the notes on May 19 and received tenders for $424.03 million, or 77.1%, of the notes.
Noteholders who tendered will receive $978.30 for each $1,000 principal amount, which includes a $40.00 early tender premium for notes tendered by the June 2 early deadline.
The company will also pay accrued interest up to but excluding the settlement date, which is expected to be Wednesday.
Under the offer, each noteholder who tendered was required to commit to purchasing a principal amount of the new 12¼% notes equal to 60% of the principal amount of notes tendered. Because the offer was oversubscribed, Visteon said it made corresponding reductions to the amount of new notes to be purchased by each noteholder.
The new notes priced at 91.621 to yield 14½%, according to a company news release.
The new notes are 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.
Conditions to the offer included 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 was 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.
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