Delphi Takes Steps To Enable Completion Of Exit Financing Syndication - Quick Facts

Posted on Wednesday, March 05, 2008 5:45 PM

(RTTNews) - Delphi Corp. (DPHIQ.PK) announced that it is taking the steps necessary to enable the completion of its exit financing syndication. Delphi said that it has been advised by General Motors that GM is prepared to provide additional exit financing. The company's $6.1 billion exit financing package is now expected to include a $1.6 billion asset-backed revolving credit facility, at least $1.7 billion of first-lien term loan, an up to $2.0 billion first-lien term note to be issued to GM (junior to the $1.7 billion first-lien term loan), and an $825 million second-lien term loan, of which any unsold portion would be issued to GM. Delphi believes that GM's increased participation in the exit financing structure is necessary to successfully syndicate its exit financing on a timely basis and is consistent with its First Amended Joint Plan of Reorganization and the investment agreement with its plan investors. To clarify that GM's increased participation complies with the Plan and the investment agreement, and to require each of the Plan Investors to perform their obligations under the investment agreement, Delphi filed a motion in the Bankruptcy Court seeking limited relief from the Court under section 1142 of the Bankruptcy Code with respect to the Plan, which was confirmed by the Court on Jan. 25, 2008. For comments and feedback: contact editorial@rttnews.com