Delphi launches $2.75 billion credit facility, sets price talk

By Sara Rosenberg

New York, May 16 - Delphi Corp. held a bank meeting Monday morning to launch its proposed $2.75 billion credit facility, allowing for details on structure and pricing to surface, according to a market source.

The facility consists of an amended and upsized $2 billion revolving credit facility with grid-based pricing and an initial interest rate talked at Libor plus 450 basis points and a $750 million term loan talked at Libor plus 550 basis points that is being offered at an original issue discount of 991/2, the source said.

The company's existing revolver that is being amended is currently sized at $1.5 billion.

JPMorgan and Citigroup are joint lead arrangers on the deal, with JPMorgan the left lead.

Delphi has said that it is seeking the new term loan for liquidity reasons.

These new facilities, which are expected to close in early June, will refinance the company's existing credit facility that totals $3 billion.

Delphi is a Troy, Mich., supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers.

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