Visteon Corp.'s five-year credit default swaps tightened 60 basis points to the 590-600 context on reports the company is seeking a buyer. Its 8 1/4% '10 bonds were up a point-and-a-half to 95 1/2, while its 7% '14 notes jumped two points to 85.
Visteon has reportedly hired JPMorgan and Citigroup to explore a sale. A trader said the company has received bids, some of which are from private equity firms. "It could be an LBO scenario," he said.
Visteon also announced improved second-quarter results last week. Net income for the second quarter was $50 million, compared with a $1.2 billion net loss in the same period last year. EBITDA was $119 million for the second quarter, a $47 million increase from the $72 million reported in the first quarter of 2006. A spokeswoman declined comment.