Delphi draws revolver; BorgWarner says acquisition agreement breached

By Sara Rosenberg

New York, March 31 – Delphi Technologies plc drew down on its full $500 million revolving credit facility to provide additional liquidity and financial flexibility in light of current economic conditions and uncertainties arising in connection with the Covid-19 pandemic, according to a news release.

In January, BorgWarner Inc. agreed to acquire Delphi in an all-stock transaction that values Delphi’s enterprise value at about $3.3 billion.

BorgWarner is asserting that Delphi breached the transaction agreement as a result of Delphi’s decision to draw down on the revolver without BorgWarner’s prior written consent, and if the breach is not cured within 30 days, BorgWarner has the right to terminate the acquisition agreement.

Delphi said it intends to continue to negotiate with BorgWarner to resolve this matter.

Delphi is a London-based provider of propulsion technologies that make vehicles drive cleaner, better and further. BorgWarner is an Auburn Hills, Mich.-based provider of clean and efficient technology solutions for combustion, hybrid and electric vehicles.

© 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.