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Viasystems Group, Inc. (NASDAQ: VIAS) (the “Company” or “Viasystems”) announced today that its wholly owned subsidiary Viasystems, Inc. commenced a consent solicitation (the “Consent Solicitation”) from holders of its outstanding 7.875% Senior Secured Notes due 2019 (the “Notes”) for an amendment to the indenture for the Notes (the “Proposed Amendment”) that would permit Viasystems, Inc. to complete the Proposed Financing (as defined below).
Viasystems, Inc. expects to issue not more than $50.0
million in principal amount of new indebtedness (the “Proposed Financing”) in the form of senior secured notes having terms substantially identical to the terms of the Notes (the “Additional Notes”). Adoption of the Proposed Amendment requires the consent of holders of at least a majority of the outstanding aggregate principal amount of the Notes voting as a single class (the “Requisite Consents”). As of March 31, 2014, the aggregate outstanding principal amount of the Notes was $550.0 million. Wells Fargo Securities, LLC and Stifel, Nicolaus & Company, Incorporated are acting as solicitation agents for the consent solicitation.
Viasystems, Inc. intends to use the net proceeds from the Proposed Financing for general corporate purposes, including to supplement its short-term cash on hand while it aggressively pursues to recover its losses related to the September 2012 fire in its Guangzhou manufacturing facility from its insurer, and to pay related fees and expenses in connection with the Proposed Financing and the Consent Solicitation, including the Consent Fee (as defined below).
The consent solicitation expires at 5:00 p.m., New York City time, on Wednesday, April 9, 2014, unless extended (such date and time, as the same may be extended, the “Expiration Date”). Only holders of record of the Notes as of 5:00 p.m., New York City time, on Monday, March 31, 2014 are eligible to deliver consents to the Proposed Amendment in the consent solicitation.