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Stock Market & Financial Investment News

News Breaks
May 2, 2014
07:16 EDTVCVisteon signs agreement to divest majority of automotive interiors business
Visteon announced an agreement to divest the majority of its global automotive interiors business to an affiliate of Cerberus Capital Management, L.P. The transaction is expected to be completed by Dec. 31. Visteon also announced it has completed a previously announced agreement to sell its 50 percent ownership stake in a Korean automotive interiors joint venture, Duckyang Industry, as part of the divestiture of its interiors business. Under terms of the agreement with the Cerberus affiliate, Visteon will divest the interiors operations for nominal consideration and will contribute up to $95M to the business. The Cerberus affiliate will assume approximately $20M of pension and other liabilities of the business, while Visteon will retain ownership in certain real estate and other assets in South America and Europe worth, in aggregate, about $35M. Visteon also will provide support services to the Cerberus affiliate. Terms of this agreement are generally consistent with previously provided guidance on Visteon's exit of the interiors business. Also, Visteon has agreed to provide a seller-backed revolver to bridge any shortfall of a targeted $90M of external credit facilities if the complete amount is not available by closing, to be repaid by the buyer, if drawn, once additional committed facilities are in place after the transaction closes. The $90M of financing is not anticipated to be utilized at closing and simply adds to the liquidity of the business. The amount of the potential Visteon-backed revolver, if any, is difficult to assess, but is not expected to exceed $20M once all external credit facilities are put in place.
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March 27, 2015
08:33 EDTVCVisteon receives antitrust approvals for sale of interest in HVCC
Visteon announced that it has received all antitrust approvals required for the previously announced sale of its approximately 70% ownership interest in Halla Visteon Climate Control Corp. to an affiliate of Hahn & Company and Hankook Tire. The purchase price for the sale is 52,000 KRW/share of HVCC, less the fiscal 2014 dividend of 970 KRW/share. Following completion of the transaction, Visteon intends to return between $2.5B and $2.75B of cash to its shareholders through a structured series of actions including share buybacks and a special distribution, which could include a large return of capital as a primary component, minimizing taxes for shareholders. Visteon expects this series of actions to be completed within 12 months following the completion of the transaction. Visteon also announced that it has entered into an amendment and waiver to its credit agreement, dated as of April 9, 2014, with Citibank, N.A. as administrative agent, and certain lenders party thereto. The amendment, among other things, provides for certain changes to the credit agreement to account for Visteon's sale of its ownership interest in HVCC.
March 16, 2015
08:11 EDTVCVisteon announces CEO Timothy Leuliette to step down by end of 2015
Visteon announced President and CEO Timothy Leuliette's intention to transition out of the company by the end of 2015, upon the appointment of his successor. The board has retained executive search firm Spencer Stuart to evaluate candidates to succeed Leuliette.

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