Chrysler lifts term loan to $3 billion, sets Libor floor at 1.25%

By Sara Rosenberg

New York, May 19 - Chrysler Group LLC upsized its six-year term loan B to $3 billion from $2.5 billion and firmed pricing at Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

Most recently, the Libor floor had been talked at 1.25% to 1.5%.

The loan is non-callable for one year, then at 102 in year two and 101 in year three.

Recommitments were due from lenders by 11 a.m. ET on Thursday.

Chrysler's now $4.3 billion senior secured credit facility, up from $4 billion, also provides for a $1.3 billion five-year revolver that was downsized from $1.5 billion.

Morgan Stanley & Co. Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and Bank of America Merrill Lynch are the lead banks on the deal, with Morgan Stanley the left lead on the term loan and Citi the left lead on the revolver.

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

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

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