Delphi relaunches exit financing

Jan. 1, 2020
Delphi Corp. recently announced it will relaunch its exit financing structure, which will include participation from General Motors Corporation, as previously announced, as well as a new commitment from an affiliate of GM, to also support the company
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Delphi Corp. recently announced it will relaunch its exit financing structure, which will include participation from General Motors Corporation, as previously announced, as well as a new commitment from an affiliate of GM, to also support the company's planned emergence from Chapter 11 reorganization.

The company's $6.1 billion exit financing package includes a $1.6 billion asset-backed revolving credit facility, at least $1.7 billion of first-lien term loan, an up to $2 billion first-lien term note to be issued to an affiliate of GM and an $825 million second-lien term loan.

Delphi presented a motion in the Bankruptcy Court March 7. At the hearing, the court said that while GM could not directly provide incremental exit financing to Delphi without the consent of the plan investors, the prohibition against additional agreements with GM did not extend to incremental financing provided through GM subsidiaries or pursuant to certain other structures, according to a release.

Although some investors still object to the proposed exit financing, Delphi says its proposed exit financing is consistent with the court's guidance and previously issued confirmation order and will be moving forward with the syndication efforts to raise $6.1 billion in financing.

Delphi's Chapter 11 cases were initially filed in 2005.

For more information, visit www.delphi.com.

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