Visteon Corporation (NYSE: VC) announced that it had taken significant steps to improve funding of its U.S. defined benefit pension plans. The company contributed 1,453,489 shares of company stock valued at approximately $70 million into its two largest U.S. plans. In addition, Visteon made a cash contribution of approximately $15.1 million to one of the plans on December 27, 2011, after the return of funds previously held by the Pension Benefit Guaranty Corporation.
Evercore Trust was engaged to serve as the independent fiduciary and investment manager in connection with this stock contribution. The stock contribution was valued by and will be managed by Evercore Trust on behalf of plan participants. Visteon agreed to file a prospectus supplement in connection with the company’s existing effective shelf registration to register the resale of the shares by Evercore Trust.
Martin E. Welch, Executive Vice President and Chief Financial Officer of Visteon, stated “This stock contribution will strengthen Visteon’s U.S. pension plans while conserving cash and increasing the company’s financial flexibility.”
Read Visteon’s full press release here: