Visteon Closes on New Seven-Year Secured Term Loan of $800 Million
14 June 2006 - 5:01AM
PR Newswire (US)
VAN BUREN TOWNSHIP, Mich., June 13 /PRNewswire-FirstCall/ --
Visteon Corporation (NYSE:VC) today announced that it has closed on
a new seven-year secured term loan of $800 million. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO ) Most of
the proceeds from the loan were used to repay amounts outstanding
under the company's existing credit facilities that were scheduled
to expire in June 2007, including a $350 million 18-month term loan
and a $241 million delayed draw term loan. Additionally, Visteon
repaid $50 million of borrowings under the company's $771 million
multi-year secured revolving credit facility and reduced the amount
available under that facility to $500 million. Visteon expects to
eliminate the multi-year revolver upon completion of new U.S. and
European five-year revolving credit facilities. The company has
received commitments for these facilities totaling $700 million
from JPMorgan Chase Bank, N.A. and Citigroup Global Markets Inc.,
and expects to complete the transactions over the next several
weeks. "We are following through on our plan to refinance on a
longer term basis all of our near-term credit facilities that
expire in June 2007," said James F. Palmer, Visteon executive vice
president and chief financial officer. "This is an important step
in Visteon's three-year improvement plan." Visteon Corporation is a
leading global automotive supplier that designs, engineers and
manufactures innovative climate, interior, electronic and lighting
products for vehicle manufacturers, and also provides a range of
products and services to aftermarket customers. With corporate
offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and
Kerpen, Germany; the company has more than 170 facilities in 24
countries and employs approximately 50,000 people. Forward-looking
Information 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 general economic conditions,
including changes in interest rates and fuel prices; the automotive
vehicle production volumes and schedules of our customers, and in
particular Ford's vehicle production volumes; our ability to
satisfy our future capital and liquidity requirements and comply
with the terms of our existing and future credit agreements and
indentures; the financial distress of our suppliers, or other
significant suppliers to our customers, and possible disruptions in
the supply of commodities to us or our customers; our ability to
implement, and realize the anticipated benefits of, restructuring
and other cost-reduction initiatives and our successful execution
of internal performance plans and other productivity efforts; the
timing and expenses related to restructurings, employee reductions,
acquisitions or dispositions; increases in raw material and energy
costs and our ability to offset or recover these costs; the effect
of pension and other post-employment benefit obligations; increases
in our warranty, product liability and recall costs; the outcome of
legal or regulatory proceedings to which we are or may become a
party; as well as those factors identified in our filings with the
SEC (including our Annual Report on Form 10-K for the fiscal year
ended Dec. 31, 2005). 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,
+1-734-710-5557, , Investor Inquiries: Derek Fiebig,
+1-313-755-3699, , both of Visteon Corporation Web site:
http://www.visteon.com/
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