Delphi has said it would be re-launching its exit financing structure, which will include participation from General Motors, as previously announced, as well as a new commitment from a GM affiliate, to also support the company’s planned emergence from Chapter 11 reorganisation.
Go deeper with GlobalData
The supplier said it would host a conference call for potential lenders on Tuesday (11 March) to discuss the company’s exit financing and related timetable.The proposed exit facilities are being arranged by JP Morgan Securities and Citigroup Global Markets.
Delphi said its $US6.1bn exit financing package includes a $1.6bn asset-backed revolving credit facility, at least $1.7bn of first-lien term loan, an up to $2.0bn first-lien term note to be issued to an affiliate of GM, and an $825m second-lien term loan.
The Associated Press (AP) noted that GM is allowed to offer as much as $750m in loans under the company’s reorganisation plan while a judge on Friday ruled that a GM affiliate – but not GM itself – could offer the two other loans, of $2bn and the second worth as much as $825m.
GM spokeswoman Renee Rashid-Merem told the news agency the company is not naming the affiliate involved in the Delphi financing until the final details have been worked out.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAP also noted that five of six investors who will inject as much as $2.55bn in return for equity in the reorganised company objected to GM’s increased participation in the loans package over concerns about GM expanding its influence over Delphi, which was its parts subsidiary until 1999 and still its biggest supplier.
The loans would “adversely affect the company and the investors by materially increasing and concentrating GM’s ongoing influence and control,” they were reported to have said.
GM has until 4 April to secure its financing, the Associated Press added.
