VAN BUREN TOWNSHIP, Mich. – Visteon Corp. says it has taken significant steps to improve funding of its U.S. defined benefit pension plans. On Jan. 9, the company contributed 1,453,489 shares of company stock valued at approximately $70 million into its two largest U.S. plans. That followed a cash contribution of approximately $15.1 million to one of the plans on Dec. 27, 2011, after the return of funds previously held by the Pension Benefit Guaranty Corporation (PBGC).  
 
"This stock contribution will strengthen Visteon's U.S. pension plans while conserving cash and increasing the company's financial flexibility," said Martin Welch, executive vice president and CFO.
 
The stock contribution was valued by and will be managed by an independent fiduciary on behalf of plan participants. Visteon has agreed to file a prospectus supplement in connection with the company's existing effective shelf registration to register the resale of the shares by the independent fiduciary.
 
The $15.1 million cash contribution is designated as a pre-funding amount that will be used to offset the plan's funding needs after June 2013. The contribution was made under an agreement with the PBGC after it released to Visteon approximately $15.1 million that it had held under a prior arrangement.