Visteon and JL French Automotive Castings traded in small blocks last week as traders homed in on auto parts makers. Visteon's credit facilities drew investors' attention as the company reached an agreement with Ford Motor Co. that is designed to improve the company's cost structure. The company's $250 million June '07 delayed-draw term loan traded at 94-96 and the $775 million revolver was quoted steady at and 91-93. The $565 million June '05 revolver moved to 98-100 up from 97-99.
The auto parts maker is currently negotiating financing alternatives, including the renewal or replacement of its $364 million revolver. It is also expecting a $1.5 billion cash infusion from Ford. But a trader noted that the 98 level reflected that even with this infusion there is still risk in this deal and people have stopped buying. A Visteon spokeswoman did not return calls.
Separately, JL French's $225 million first lien inched to 95-97, up from 94-96 in the beginning of the week. The $170 million second lien saw markets at 72-75. Onex Corp.'s J.L. French reported lower revenues and operating earnings in the first quarter of 2005 compared to same quarter last year due primarily to lower production volumes from its major customers, Ford and General Motors Corp. Eve Heersick, Onex's managing director and cfo, did not return calls.