DELPHI 2015 Annual Report Download - page 114

Table of Contents
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On March 10, 2015, Delphi Automotive PLC issued €700 million in aggregate principal amount of 1.50% Euro-
denominated senior unsecured notes due 2025 (the “2015 Euro-denominated Senior Notes”) in a transaction registered under
the Securities Act. The 2015 Euro-denominated Senior Notes were priced at 99.54% of par, resulting in a yield to maturity of
1.55%. The proceeds were primarily utilized to redeem the 6.125% Senior Notes, and to fund future growth initiatives, such as
acquisitions, and share repurchases. Delphi incurred approximately $5 million of issuance costs in connection with the 2015
Euro-denominated Senior Notes. Interest is payable annually on March 10. The Company has designated the 2015 Euro-
denominated Senior Notes as a net investment hedge of the foreign currency exposure of its investments in certain Euro-
denominated subsidiaries. Refer to Note 17. Derivatives and Hedging Activities for further information.
On November 19, 2015, Delphi Automotive PLC issued $1.3 billion in aggregate principal amount of senior unsecured
notes in a transaction registered under the Securities Act, comprised of $650 million of 3.15% senior unsecured notes due 2020
(the "3.15% Senior Notes") and $650 million of 4.25% senior unsecured notes due 2026 (the "4.25% Senior Notes")
(collectively, the “2015 Senior Notes”). The 3.15% Senior Notes were priced at 99.784% of par, resulting in a yield to maturity
of 3.197%, and the 4.25% Senior Notes were priced at 99.942% of par, resulting in a yield to maturity of 4.256%. The proceeds
were primarily utilized to fund a portion of the cash consideration for the acquisition of HellermannTyton, as further described
in Note. 20. Acquisitions and Divestitures, and for general corporate purposes, including the payment of fees and expenses
associated with the HellermannTyton acquisition and the related financing transaction. Delphi incurred approximately $8
million of issuance costs in connection with the 2015 Senior Notes. Interest on the 3.15% Senior Notes is payable semi-
annually on May 19 and November 19 of each year to holders of record at the close of business on May 4 or November 4
immediately preceding the interest payment date. Interest on the 4.25% Senior Notes is payable semi-annually on January 15
and July 15 of each year to holders of record at the close of business on January 1 or July 1 immediately preceding the interest
payment date.
Although the specific terms of each indenture governing each series of senior notes vary, the indentures contain certain
restrictive covenants, including with respect to Delphi’s (and Delphi’s subsidiaries) ability to incur certain liens, enter into sale
and leaseback transactions and merge with or into other entities. As of December 31, 2015, the Company was in compliance
with the provisions of all series of the outstanding senior notes.
The 2013 Senior Notes and 2014 Senior Notes issued by Delphi Corporation are fully and unconditionally guaranteed,
jointly and severally, by Delphi Automotive PLC and by certain of Delphi Automotive PLC's direct and indirect subsidiaries
which are directly or indirectly 100% owned by Delphi Automotive PLC, subject to customary release provisions (other than in
the case of Delphi Automotive PLC). The 2015 Euro-denominated Senior Notes and 2015 Senior Notes issued by Delphi
Automotive PLC are fully and unconditionally guaranteed, jointly and severally, by certain of Delphi Automotive PLC's direct
and indirect subsidiaries (including Delphi Corporation), which are directly or indirectly 100% owned by Delphi Automotive
PLC, subject to customary release provisions. Refer to Note 22. Supplemental Guarantor and Non-Guarantor Condensed
Consolidating Financial Statements for additional information.
Other Financing
Receivable factoring—Delphi maintains a €400 million European accounts receivable factoring facility, of which €350
million is available on a committed basis. This facility is accounted for as short-term debt and borrowings are subject to the
availability of eligible accounts receivable. No amounts were outstanding under this European accounts receivable factoring
facility as of December 31, 2015 and 2014. Collateral is not generally required related to these trade accounts receivable. In
addition, in 2015 and 2014 one of the Company’s European subsidiaries factored, without recourse, receivables related to
certain foreign research tax credits to a financial institution. These transactions were accounted for as true sales of the
receivables, and the Company therefore derecognized approximately $27 million and $73 million from other current assets in
the consolidated balance sheet as of December 31, 2015 and December 31, 2014, respectively, as a result of these transactions.
Expenses of approximately $1 million and $2 million incurred in conjunction with these transactions were recorded to interest
expense during the years ended December 31, 2015 and December 31, 2014, respectively.
In 2015, the Company entered into arrangements with various financial institutions to sell eligible trade receivables from
certain aftermarket customers in North America. These arrangements have original terms of one year and may be renewed
annually. The receivables under these arrangements are sold without recourse to the Company and are therefore accounted for
as true sales. During the year ended December 31, 2015, $100 million of receivables were sold under these arrangements, and
expenses of $2 million were recognized within interest expense.
Capital leases and other—As of December 31, 2015 and December 31, 2014, approximately $77 million and
approximately $53 million, respectively, of other debt issued by certain non-U.S. subsidiaries and capital lease obligations were
outstanding.
Interest—Cash paid for interest related to debt outstanding totaled $104 million, $119 million and $118 million for the
years ended December 31, 2015, 2014 and 2013, respectively.