Platinum Using Who for Delphi Financing?

When Platinum Equity's $3.6 billion acquisition of Delphi was first announced last week it was unclear where exactly the $3.6 billion was coming from. Platinum doesn't have near enough equity or the ability to even provide one third of the total, and many wondered what bank would lend to an auto parts company that had been in bankruptcy for four years. The answer: U.S. Government-owned GM. GM is providing more than $2.5 billion of financing with Platinum investing $250 million of cash and a delayed $250 million for a term loan facility. The deal resembles a combo of the government-backed BankUnited Financial deal and the ill-fated Cerberus LBO of Chrysler.