Visteon tender offer for 8¼% notes oversubscribed at early deadline

By Angela McDaniels

Tacoma, Wash., June 3 - Visteon Corp. had received tenders for $423.62 million, or 77.02%, of its $550 million 8¼% senior notes due 2010 as of 5 p.m. ET on June 2, according to a company news release.

The company began a tender offer for up to $344 million of the notes on May 19. June 2 was the early tender deadline, and the offer will expire at 11:59 p.m. ET on June 16.

Noteholders who tender will receive $978.30 for each $1,000 principal amount, which includes a $40.00 early tender premium for notes tendered by the early deadline.

The company will also pay accrued interest up to but excluding the settlement date, which is expected 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.

Because the offer is oversubscribed, Visteon will accept notes on a pro rata basis and make corresponding reductions to the amount of new notes to be purchased by each noteholder.

Conditions to the offer include 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.

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