Chrysler launches $4.25 billion credit facility repricing to lenders

By Sara Rosenberg

New York, June 12 - Chrysler Group LLC held a call at 11 a.m. ET on Wednesday to launch a repricing of its $4,247,000,000 credit facility, according to market sources.

The facility consists of a $1.3 billion revolver due May 24, 2016 and a $2,947,000,000 term loan due May 24, 2017, sources said.

Price talk on both tranches is Libor plus 300 basis points to 325 bps, with the term loan having a 1% Libor floor, a par offer price and 101 soft call protection for six months, sources continued.

The repricing will take both the revolver and the term loan down from Libor plus 475 bps, and the Libor floor on the term loan down from 1.25%.

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

With the repricing, the company is also seeking various amendments to the credit facility, including to revise the restricted payments basket to have a 50% consolidated net income builder basket to match the second-lien notes, sources added.

Commitments/consents are due at 5 p.m. ET on Tuesday.

Closing is expected to occur on June 21.

Chrysler is an Auburn Hills, Mich.-based automotive company.

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