SOURCE: Delphi Corporation

Delphi Corporation

March 31, 2011 17:00 ET

Delphi Announces Purchase of Shares From General Motors and PBGC

TROY, MI--(Marketwire - March 31, 2011) - Delphi Automotive LLP, a leading global supplier of electronics and technologies for automobiles, commercial and other vehicles, today announced the company has purchased the Class A interests owned by General Motors Company (GM) for $3.8 billion and the Class C interests owned by the Pension Benefit Guaranty Corporation (PBGC) for $594 million. These transactions, funded with cash on the company's balance sheet and $2.5 billion of new bank debt as part of a $3.0 billion credit facility provided by J.P. Morgan Securities LLC, fully retire the ownership shares acquired by GM and the PBGC in connection with Delphi's acquisition by a group of private investors in October 2009. Based on these transactions, the company has an efficient capital structure and a prudent level of debt.

"These transactions represent an important step in positioning Delphi to continue to increase shareholder value," said Rodney O'Neal, Delphi president and chief executive officer. "We continue to have significant financial flexibility and remain committed to pursuing opportunities that drive value creation."

Delphi reported solid 2010 year-end revenues of $13.8 billion and EBITDA of $1.4 billion, demonstrating significant growth, continued focus on operational excellence and strong emphasis on earnings and cash generation. 

About Delphi
Delphi Automotive LLP was created in October 2009 when a group of private investors acquired certain assets of the former Delphi Corporation. Delphi is a leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Operating major technical centers, manufacturing sites and customer support facilities in 30 countries, Delphi delivers real-world innovations that make products smarter and safer as well as more powerful and efficient. Connect to innovation at www.delphi.com.

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