VISTEON CORP 8-K

What Happened
Visteon Corporation filed an 8‑K on April 29, 2026 disclosing Amendment No. 8 (dated April 27, 2026) to its credit agreement. The amendment replaces the existing facilities with a $400 million Refinancing Revolving Facility and a $300 million Refinancing Term Facility (collectively $700M), replaces Citibank, N.A. as administrative agent with Bank of America, N.A., and extends the maturity date to April 27, 2031.

Key Details

• Amendment No. 8 dated April 27, 2026; Credit Agreement originally dated April 9, 2014.
• New facilities: $400,000,000 revolving credit facility and $300,000,000 term loan A.
• Interest: options for Base Rate + margin (0.00%–0.75%) or SOFR + margin (1.00%–1.75%), with a commitment fee of 0.15%–0.25% on unused revolver.
• Sustainability adjustment: up to 0.05% interest and 0.01% commitment fee improvement tied to carbon‑emissions-to-revenue performance.
• Usage limits: up to $75M of revolver for letters of credit; up to $40M available for swing line advances.
• Amortization: term loan amortizes at 5% of original principal per year in equal quarterly installments starting Sept 30, 2026; full balance due at maturity. Prepayment allowed without penalty.
• Financial covenant: Total Net Leverage Ratio must not exceed 3.50:1.00 (can increase to 4.00:1.00 for three full fiscal quarters after a material acquisition).
• Security and guarantees: obligations guaranteed by certain subsidiaries and secured by first‑priority liens on substantially all assets (subject to exceptions and potential release conditions tied to ratings).

Why It Matters
This amendment materially affects Visteon’s borrowing structure and near‑term liquidity profile by replacing prior facilities with $700M of new committed financing and extending the maturity to 2031, reducing near‑term refinancing risk. The new credit terms set financial covenants and provide secured backing for lenders, which can limit flexibility but also provide committed access to capital (including letters of credit and swing lines). Investors should note the leverage covenant levels, the scheduled amortization of the term loan beginning in late 2026, and the variable interest costs tied to leverage and sustainability metrics.