Five-year credit default swaps on Visteon tightened about five points last week to level off at 420-430 after an improved earnings announcement, according to a dealer. It was a "decent mover" in a pretty boring market last week, he said. After jumping about one-and-a-half points last week, its 8.25% '10 bonds were trading at 103.625 and its 7.5% '14 notes remained around 88, according to Markit data.
The struggling auto parts marker recently announced it lost $39 million in the fourth quarter but its loss for the full year narrowed to $163 million from $388 million for 2005. It added $200 million to its $800 million term loan in November (CIN, 11/29). JPMorgan and Citigroup lead the credit line, which is priced at LIBOR plus 3%. It was trading around 100.782-101.157 last Thursday, according to Markit. Calls to a company spokesman were not returned.