Visteon tightens issue price on $350 million term loan B to par

By Sara Rosenberg

New York, March 17 – Visteon Corp. revised the issue price on its $350 million seven-year senior secured covenant-light term loan B (BB+) to par from talk in the range of 99.5 to 99.75, according to a market source.

Pricing on the term loan is still Libor plus 225 basis points with a 0% Libor floor.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum.

Included in the loan is an incremental allowance not to exceed $350 million plus the aggregate amount of all voluntary prepayments, plus an unlimited amount subject to senior secured net leverage of less than 2.5 times. There is 50 bps MFN for 12 months.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, UBS Investment Bank, SMBC and US Bank are the joint lead arrangers on the deal.

Recommitments and new money commitments were scheduled to be due at 5 p.m. ET on Friday, the source added.

Proceeds will be used to amend and extend an existing term loan B due 2021.

The company is also looking to extend its revolving credit facility’s maturity to 2022 from 2019 and increase its size to $300 million from $200 million.

Closing is expected during the week of March 20.

Visteon is a Van Buren Township, Mich.-based designer and manufacturer of cockpit electronics products and connected car solutions for vehicle manufacturers.

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