Viasystems gets 7 7/8% noteholder OK to sell $50 million more notes

By Angela McDaniels

Tacoma, Wash., April 9 - Viasystems Group, Inc. said wholly owned subsidiary Viasystems, Inc. received enough consents to amend the indenture governing its $550 million of outstanding 7 7/8% senior secured notes due 2019.

The amendment will allow the subsidiary to sell up to $50 million principal amount of new senior secured notes with terms that are substantially identical to the terms of the 7 7/8% notes, according to a company news release.

The consent solicitation began April 1 and ended at 5 p.m. ET on April 9.

The holders of 99.64% of the notes delivered consents. The amendment required the consent of holders of at least a majority of the outstanding notes.

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

The amendment will become effective once a supplemental indenture is executed, but it will not become operative until the proposed financing has closed and the company pays the consent fee.

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

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

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

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