Because of the syndication's success, Troy, Mich.-based Delphi on May 9 moved to increase the DIP's $1 billion first-lien revolver to $1.1 billion and decrease the facility's B tranche, a $600 million first-lien term loan, to $500 million.
The new money in the DIP comes through the facility's tranche C loan -- a $2.5 billion second-priority term loan at first -- which was increased to $2.754 billion.
"As the syndication effort proceeded, investor interest in participating in the debtors' DIP facility proved to be significantly stronger than previously expected," Delphi said in court filings. "As a result, the debtors and the DIP lenders were able to make use of the opportunity afforded by the market support to make several improvements to the structure" of the DIP.
J.P. Morgan Chase Bank NA, which led Delphi's two previous DIPs -- one for $2.09 billion and one for almost $2.5 billion -- is leading the new $4.354 billion DIP, which replaces the previous postpetition borrowings.
Delphi, which filed for Chapter 11 on Oct. 8, 2005, on May 9 reported that it lost $589 million in the first three months of this year, on revenue of $5.3 billion, compared with a loss of $533 million on revenue of $5.7 billion in the same period in 2007.
See the full story from The Daily Deal. - John Blakeley
