Delphi Automotive PLC (Delphi), a leading global technology company serving the automotive sector, has announced the commencement of a $750 million private offering of senior notes due 2025 by its subsidiary, Delphi Jersey Holdings PLC (DPS). DPS is the recently formed holding company for Delphi’s Powertrain Systems segment, which Delphi intends to separate from its current business by means of a spin-off to its shareholders.
Upon completion of the separation, DPS intends to use the proceeds from the offering, together with borrowings under a $750 million term loan as part of its credit facilities, to fund operating cash, pay taxes, fees and expenses related to the spin-off, and distribute a dividend to Delphi. Pending completion of the separation, proceeds of the offering will be deposited into escrow for the benefit of the holders of the notes.