Delphi Corporation on Friday said it had postponed a $US300 million preferred stock offering until the third quarter of the year as a record $17.6 billion debt offering by General Motors had sapped market demand, Reuters reported.
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“The sheer size of the debt offering has reduced the capacity for the market to absorb any additional debt offering,” Delphi spokeswoman Paula Angelo told the news agency.
Reuters noted that Delphi said in late March that it intended to offer $US300 million in preferred stock through its newly created subsidiary, Delphi Properties Incorporated, a real estate investment trust. Delphi had hoped to complete the offering by the end of the second quarter, Angelo reportedly said.
According to Reuters, Delphi had planned to use the proceeds from the offering for its US pension plans, which ended last year under-funded by $4.1 billion, up from $2.4 billion the previous year.
The securities are backed by mortgage notes on Delphi’s 14 properties in five US states, totalling 86.6 million square feet of space, the Reuters report added.
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