Visteon Announces New Credit Agreement
June 27 2005 - 9:30AM
PR Newswire (US)
Visteon Announces New Credit Agreement VAN BUREN TOWNSHIP, Mich.,
June 27 /PRNewswire-FirstCall/ -- Visteon Corporation (NYSE:VC)
today announced a new secured short-term credit agreement for $300
million. The new facility closed on June 24, 2005 and replaces the
364-day facility that expired June 17, 2005. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO ) In
conjunction with the new facility, the existing $775 million,
5-year facility and the $250 million delayed draw term loan were
amended and restated to reflect terms and conditions substantially
the same as the new short-term facility. The two existing
facilities terminate in June 2007. The new facility and the amended
and restated facilities are with a syndicate of financial
institutions, lead by joint lead arrangers JPMorgan Chase Bank,
N.A., and Citicorp USA, Inc. The new credit facility expires on the
earlier of December 15, 2005 or 5 days after an expiration or
termination of the Memorandum of Understanding with Ford. "We are
pleased with the continued support from financial institutions in
our syndicate," said James Palmer, Visteon's executive vice
president and chief financial officer. "The new short-term facility
and amendments to existing facilities provide Visteon additional
time to address our capital structure and liquidity requirements
until such time as the agreement with Ford is finalized. We
continue to work toward reaching a definitive agreement with Ford
by the end of July and closing the transaction by the end of
September." The facilities are secured by a first-priority lien on
substantially all material tangible and intangible assets of
Visteon and most of its domestic subsidiaries, as well as the stock
of certain subsidiaries (excluding Halla Climate Control). The
terms of the facilities specifically limit the obligations to be
secured by a security interest in certain U.S. assets in order to
ensure compliance with the company's bond indenture. Additionally,
the syndicate of financial institutions in all three facilities has
agreed to extend Visteon's obligation to provide financial
statements for relevant accounting periods until December 10, 2005.
On May 20, 2005, Visteon announced that it had amended its credit
facilities, extending the deadline for the company to deliver its
first quarter 2005 financial statements until July 29, 2005. Limits
on consolidated leverage ratios were also raised for the remaining
quarters of 2005, then will gradually decrease in subsequent
quarters. Visteon Corporation is a leading full-service supplier
that delivers consumer-driven technology solutions to automotive
manufacturers worldwide and through multiple channels including the
global automotive aftermarket. Visteon has about 70,000 employees
and a global delivery system of more than 200 technical,
manufacturing, sales and service facilities located in 24
countries. This press release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward- looking statements are not guarantees of future
results and conditions but rather are subject to various factors,
risks and uncertainties that could cause our actual results to
differ materially from those expressed in these forward-looking
statements, including the automotive vehicle production volumes and
schedules of our customers, and in particular Ford's North American
vehicle production volumes; our ability to enter into definitive
agreements that reflect the terms of the Memorandum of
Understanding with Ford and close the transactions that are
contemplated in the Memorandum of Understanding; implementing
structural changes that result from the closing of the transactions
contemplated by the Memorandum of Understanding in order to achieve
a competitive and sustained business; our ability to satisfy our
future capital and liquidity requirements and comply with the terms
of our credit agreements; the results of the investigation being
conducted by Visteon's Audit Committee; the financial distress of
our suppliers; our successful execution of internal performance
plans and other cost-reduction and productivity efforts; charges
resulting from restructurings, employee reductions, acquisitions or
dispositions; our ability to offset or recover significant material
surcharges; the effect of pension and other post- employment
benefit obligations; as well as those factors identified in our
filings with the SEC (including our Annual Report on Form 10-K for
the year- ended December 31, 2004). We assume no obligation to
update these forward- looking statements.
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO DATASOURCE:
Visteon Corporation CONTACT: Media Inquiries: Jim Fisher, Off.:
+1-734-710-5557, , or Analyst Inquiries: Derek Fiebig,
+1-734-710-5800, , both of Visteon Corporation Web site:
http://www.visteon.com/
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