Delphi Financial Group has doubled its credit line to $200 million and improved the rates and covenants following an upgrade to investment-grade territory. The new five-year revolver is led by Banc of America Securities and Wachovia Capital Markets. The two led the previous line for the Wilmington, Del.-based company, which was scheduled to mature in December 2006.
Delphi, an employment benefit services company, was upgraded by Moody's Investors Service last October to investment grade. Fitch Ratings and Standard & Poor's both already rated Delphi in investment-grade territory, explained Bernard Kilkelly, v.p. of investor relations at Delphi. He said the upwards move enabled the company to negotiate more favorable terms, including the possibility of raising dividends and stock buybacks.
It took some time to arrange the new facility following the upgrade as the lead arrangers brought in another commercial bank, he added, noting the new line was heavily oversubscribed. He declined to provide pricing.