Chrysler Group to launch $2 billion of term loans on Thursday

By Sara Rosenberg

New York, Jan. 29 - Chrysler Group LLC will hold a call on Thursday to launch $2 billion of senior secured term loans, according to a market source.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the deal.

The debt consists of a $250 million add-on term loan due May 2017 and a new $1.75 billion term loan due December 2018, the source said.

Both tranches are talked at Libor plus 275 basis points with a 0.75% Libor floor, the source continued.

The add-on term loan is talked with an original issue discount of 99¾ and the new term loan is talked at a discount of 991/2.

The spread and floor match the company's existing term loan due May 2017.

Proceeds will be used to help repay all of the company's unsecured note issued on June 10, 2009 to the VEBA Trust.

Other funds for the transaction will come from $2.7 billion of senior secured notes.

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

© 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.