| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Tenders > Headlines for 2020 > News item |
BorgWarner offers to exchange, seeks to amend Delphi 5% notes due 2025
By Taylor Fox
New York, Sept. 2 – BorgWarner Inc. has begun a private exchange offer and consent solicitation with respect to Delphi Technologies plc’s outstanding $800 million 5% senior notes due 2025 (Cusip: 24718PAA5, U24754AA8), according to a news release.
BorgWarner is offering to issue new 5% senior notes due 2025 in exchange for any and all of the Delphi notes in connection with its proposed acquisition of Delphi.
The total consideration is $1,000 of new BorgWarner notes plus a cash consideration of $1 per $1,000 of Delphi notes tendered for exchange by the early tender deadline at 5 p.m. ET on Sept. 16.
Holders who tender their notes after the early tender deadline but on or prior to the expiration date will only be eligible to receive $970 of new notes per $1,000 of existing notes tendered, but not the cash consideration.
The exchange offer and consent solicitation will expire at 5 p.m. ET on Oct. 1.
Under the consent solicitation, BorgWarner is soliciting consents from noteholders to amend the 2025 notes to eliminate substantially all of the restrictive covenants and events of default, with a few exceptions, and to eliminate the covenant relating to a change-of-control triggering event with respect to Delphi Technologies. To be effective, the amendments require approval from holders of a majority in principal amount of the notes.
Tendered notes may not be withdrawn and consents may not be revoked after 5 p.m. ET on Sept. 16.
The exchange offer is conditioned on completion of the Delphi acquisition, which is expected to occur in 2020. However, the exchange offer and consent solicitation are not conditioned on the tender of any minimum amount of notes or the receipt of the required consents under the consent solicitation.
Settlement is expected to occur on or about Oct. 5.
Global Bondholder Services Corp. (866 470-3800 or, for banks and brokers, 212 430-3774; https://gbsc-usa.com/eligibility/bwa) is the information agent.
BorgWarner is an Auburn Hills, Mich.-based manufacturer and seller of engineered automotive systems and components.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.