Delphi increases term loan A by $363 million, revises covenants

By Angela McDaniels

Tacoma, Wash., Sept. 18 - Delphi Automotive plc subsidiary Delphi Corp. increased the borrowing capacity under its senior secured five-year term loan A by $363 million on Friday, according to an 8-K filling with the Securities and Exchange Commission.

This additional borrowing is available as a delayed-draw facility for 30 days.

The increased capacity will be used in connection with financing the acquisition of FCI Group's motorized vehicles division.

The company said it also revised the operating covenants, enhancing its financial flexibility. The modifications include

• Increased access to additional term loan facilities under certain conditions;

• Additional flexibility to incur additional debt and to pay dividends or make redemptions/repurchases of the company's equity interests; and

• Additional flexibility to invest in foreign subsidiaries.

Consenting lenders received a consent fee of 5 basis points.

JPMorgan Chase Bank, NA is the administrative agent.

Delphi manufactures vehicle components and has administrative offices in Troy, Mich. Delphi Automotive is based in Gillingham, England.

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