Chrysler Group sets Wednesday launch for new credit facility

By Sara Rosenberg

New York, April 29 - Chrysler Group LLC is scheduled to hold a bank meeting on Wednesday to launch its proposed credit facility, according to a market source.

Market chatter is that the deal will include a new term loan led by Morgan Stanley & Co. Inc. and a new revolver led by Citigroup Global Markets Inc., the source said.

The company is also planning on issuing new bonds that are expected to be led by Bank of America Merrill Lynch.

Rumor is that the term loan and bonds will total $6 billion; however, official details on the structure of the financing are not yet available.

Proceeds will be used to repay all of the company's loans provided by the U.S. Department of the Treasury and the Canadian federal and Ontario governments.

Other funds for the repayment will come from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler.

Completion of the credit facility, debt offering and equity investment by Fiat are expected to occur concurrently in the second quarter.

Chrysler is an Auburn Hills, Mich.-based producer of Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.