DELPHI 2012 Annual Report Download - page 81

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59
(b) LIBOR plus (i) with respect to the Revolving Credit Facility and the Tranche A Term Loan, 2.00% per annum or (ii) with
respect to the Tranche B Term Loan, 2.50% per annum. The Tranche B Term Loan includes a LIBOR floor of 1.00%. The
interest rate period with respect to the LIBOR interest rate option can be set at one-, two-, three-, or six-months as selected by
us in accordance with the terms of the Credit Agreement (or other period as may be agreed by the applicable lenders), but
payable no less than quarterly. We may elect to change the selected interest rate over the term of the Credit Facilities in
accordance with the provisions of the Credit Agreement. The applicable interest rates listed above for the Revolving Credit
Facility and the Tranche A Term Loan may increase or decrease from time to time in increments of 0.25% to 0.50%, up to a
maximum of 1.0% based on changes to our corporate credit ratings. Accordingly, the interest rate will fluctuate during the term
of the Credit Agreement based on changes in the Alternate Base Rate, LIBOR or future changes in our corporate credit ratings.
The table below indicates interest rate sensitivity on interest expense to floating rate debt based on amounts outstanding
as of December 31, 2012.
Tranche A
Term Loan Tranche B
Term Loan
Change in Rate (impact to annual interest
expense in millions)
25 bps decrease ...................................................................................................................................... - $1 - $2*
25 bps increase....................................................................................................................................... +$1 +$2
* LIBOR floor of 1.00% prohibits a 25 basis point reduction at current LIBOR levels.