Visteon Announces New Credit Agreement

Visteon Announces New Credit Agreement 


VAN BUREN TOWNSHIP, Mich., June 27  /PRNewswire-FirstCall/ -- Visteon
Corporation (NYSE:VC) today announced a new secured short-term credit agreement
for $300 million.  The new facility closed on June 24, 2005 and replaces the
364-day facility that expired June 17, 2005.

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In conjunction with the new facility, the existing $775 million, 5-year
facility and the $250 million delayed draw term loan were amended and restated
to reflect terms and conditions substantially the same as the new short-term
facility.  The two existing facilities terminate in June 2007.  The new
facility and the amended and restated facilities are with a syndicate of
financial institutions, lead by joint lead arrangers JPMorgan Chase Bank, N.A.,
and Citicorp USA, Inc.  The new credit facility expires on the earlier of
December 15, 2005 or 5 days after an expiration or termination of the
Memorandum of Understanding with Ford.

"We are pleased with the continued support from financial institutions in our
syndicate," said James Palmer, Visteon's executive vice president and chief
financial officer.  "The new short-term facility and amendments to existing
facilities provide Visteon additional time to address our capital structure and
liquidity requirements until such time as the agreement with Ford is finalized.
 We continue to work toward reaching a definitive agreement with Ford by the
end of July and closing the transaction by the end of September."

The facilities are secured by a first-priority lien on substantially all
material tangible and intangible assets of Visteon and most of its domestic
subsidiaries, as well as the stock of certain subsidiaries (excluding Halla
Climate Control).  The terms of the facilities specifically limit the
obligations to be secured by a security interest in certain U.S. assets in
order to ensure compliance with the company's bond indenture.

Additionally, the syndicate of financial institutions in all three facilities
has agreed to extend Visteon's obligation to provide financial statements for
relevant accounting periods until December 10, 2005.  On May 20, 2005, Visteon
announced that it had amended its credit facilities, extending the deadline for
the company to deliver its first quarter 2005 financial statements until July
29, 2005.  Limits on consolidated leverage ratios were also raised for the
remaining quarters of 2005, then will gradually decrease in subsequent
quarters.

Visteon Corporation is a leading full-service supplier that delivers
consumer-driven technology solutions to automotive manufacturers worldwide and
through multiple channels including the global automotive aftermarket. Visteon
has about 70,000 employees and a global delivery system of more than 200
technical, manufacturing, sales and service facilities located in 24 countries.

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995.  Forward- looking
statements are not guarantees of future results and conditions but rather are
subject to various factors, risks and uncertainties that could cause our actual
results to differ materially from those expressed in these forward-looking
statements, including the automotive vehicle production volumes and schedules
of our customers, and in particular Ford's North American vehicle production
volumes; our ability to enter into definitive agreements that reflect the terms
of the Memorandum of Understanding with Ford and close the transactions that
are contemplated in the Memorandum of Understanding; implementing structural
changes that result from the closing of the transactions contemplated by the
Memorandum of Understanding in order to achieve a competitive and sustained
business; our ability to satisfy our future capital and liquidity requirements
and comply with the terms of our credit agreements; the results of the
investigation being conducted by Visteon's Audit Committee; the financial
distress of our suppliers; our successful execution of internal performance
plans and other cost-reduction and productivity efforts; charges resulting from
restructurings, employee reductions, acquisitions or dispositions; our ability
to offset or recover significant material surcharges; the effect of pension and
other post- employment benefit obligations; as well as those factors identified
in our filings with the SEC (including our Annual Report on Form 10-K for the
year- ended December 31, 2004).  We assume no obligation to update these
forward- looking statements. 

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DATASOURCE: Visteon Corporation



CONTACT:  Media Inquiries: Jim Fisher, Off.: [phone],

 , or Analyst Inquiries: Derek Fiebig, [phone],

 , both of Visteon Corporation



Web site:  http://www.visteon.com/ 

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