Published on 3/31/2011 in the Prospect News High Yield Daily.
New Issue: Visteon prices $500 million eight-year notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., March 31 - Visteon Corp. priced a $500 million issue of eight-year senior notes (B2/B+/) at par to yield 6¾% on Thursday, according to an informed source.
The yield printed on top of the price talk.
Merrill Lynch, Morgan Stanley & Co. Inc. and Citigroup Global Markets Inc. were the joint bookrunners.
The notes will become callable in three years at par plus 75% of the coupon. A special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the non-call period.
The Van Buren Township, Mich.-based automotive supplier plans to use the proceeds, along with cash on hand, to repay the company's existing term loan and for general corporate purposes.
| Issuer: | Visteon Corp.
|
| Amount: | $500 million
|
| Maturity: | April 15, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Merrill Lynch, Morgan Stanley & Co. Inc., Citigroup Global Markets Inc.
|
| Joint lead managers: | Scotia Capital, Barclays Capital Inc.
|
| Co-managers: | Comerica Investments, Sumitomo
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 367 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2014, then callable at 105.063, 103.375, 101.688, par on and after April 15, 2017 (Special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the non-call period)
|
| Equity clawback: | 35% at 106.75 until April 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | March 31
|
| Settlement date: | April 6
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 6¾% area
|
| Marketing: | Brief roadshow
|
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