Delphi to relaunch $6.125 billion credit facility on Tuesday

By Sara Rosenberg

New York, March 10 - Delphi Corp. is scheduled to hold a conference call for potential lenders on Tuesday to relaunch its $6.125 billion exit financing credit facility, according to market sources.

JPMorgan and Citigroup are the lead banks on the deal, which is being done on a best efforts basis.

The facility consists of a $1.6 billion asset-backed revolver, a $1.7 billion first-lien term loan, a $2 billion first-lien term note to be issued to an affiliate of General Motors Corp. (junior to the $1.7 billion term loan), and an $825 million second-lien term loan, of which any unsold portion would be issued to General Motors and/or its affiliates.

The asset-backed revolver is priced at Libor plus 300 basis points, sources said.

The $1.7 billion first-lien term loan is being talked at Libor plus 575 bps, with a 3.25% Libor floor for life, and call protection of 102 in year one and 101 in year two, sources continued. This debt will be offered to investors with an original issue discount in the low 90s, likely around 92.

The second-lien term loan is talked at Libor plus 875 bps, with a 3.25% Libor floor for life, and call protection of 103 in year one, and 101½ in year two, sources added.

Proceeds will be used to repay the company's debtor-in-possession financing facility, to fund other payments required upon emergence from Chapter 11 and to conduct post-reorganization operations.

Delphi is a Troy, Mich.-based automotive electronics manufacturer.

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