TROY, MI — Delphi announced yesterday it has completed its $2.8 billion refinancing plan, comprised of a $1.8 billion secured revolving credit facility and a $1 billion secured term loan. The company said it believes the completion of this refinancing plan will provide access to sufficient liquidity to continue to address its U.S. legacy cost issues during the current low GM North American production environment.
“We are extremely pleased with this successful refinancing and the high level of support from our lead banks, JP Morgan and Citigroup, and our other lenders and investors. We achieved what we set out to accomplish in securing a financing deal that will provide us the liquidity and flexibility to continue our transformation,” said John Sheehan, Delphi’s acting CFO. “Additionally, we made a second contribution of $475 million to fund our U.S. pension plans, bringing our total contributions this quarter to $625 million and fulfilling our minimum 2005 pension contribution requirements.”
The term loan is due in full on June 14, 2011, while the revolving credit facility is available to the company through June 18, 2009. Upon completion of the refinancing, Delphi terminated its 364-day revolving credit line of $1.5 billion, which was due to expire on June 17, 2005. There were no outstanding borrowings under that facility.
For more information about Delphi, visit: www.delphi.com.
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