VAN BUREN TOWNSHIP, Mich.,
Jan. 10, 2012 /PRNewswire/
-- Visteon Corporation (NYSE: VC) announced it has taken
significant steps to improve funding of its U.S. defined benefit
pension plans. The company on Jan. 9
contributed 1,453,489 shares of company stock valued at
approximately $70 million into its
two largest U.S. plans. That followed a cash contribution of
approximately $15.1 million to one of
the plans on Dec. 27, 2011, after the
return of funds previously held by the Pension Benefit Guaranty
Corporation (PBGC).
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"This stock contribution will strengthen Visteon's U.S. pension
plans while conserving cash and increasing the company's financial
flexibility," said Martin E. Welch,
executive vice president and chief financial officer. The stock
contribution was valued by and will be managed by an independent
fiduciary on behalf of plan participants. Visteon has agreed to
file a prospectus supplement in connection with the company's
existing effective shelf registration to register the resale of the
shares by the independent fiduciary.
The $15.1 million cash
contribution is designated as a pre-funding amount that will be
used to offset the plan's funding needs after June 2013. The contribution was made under an
agreement with the PBGC after it released to Visteon approximately
$15.1 million that it had held under
a prior arrangement.
Visteon Corporation is a leading global automotive supplier that
designs, engineers and manufactures innovative climate, interior,
electronic and lighting products for vehicle manufacturers. With
corporate offices in Van Buren Township,
Mich. (U.S.); Shanghai,
China; and Chelmsford, UK;
the company has facilities in 27 countries and employs
approximately 27,000 people. Learn more at www.visteon.com.
SOURCE Visteon Corporation