Parts maker, Delphi Automotive, has closed a $4.39 billion deal to buy back all of its shares held by General Motors (GM) and the federal government’s pension agency, The Wall Street Journal reports. Delphi paid $3.8 billion to buy the shares held by GM and $594 million to buy the stake owned by the Pension Benefit Guaranty Corporation (PBGC).
The acquisition was financed by Delphi’s cash reserves and $2.5 billion in new bank debt as part of a $3 billion credit facility provided by JP Morgan Securities. The buyback combines Delphi’s ownership by the consortium of over 80 investment funds that now control the Michigan-based company and positions the company for a possible IPO.
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