Fiat board approves Chrysler merger and $5.4 billion bond sale

Article by Christian Andrei, on June 20, 2014

The board of Fiat S.p.A. has approved a plan to raise up to $5.4 billion (EUR4 billion) through issuance of new bonds. The approval allows Fiat to issue one or more bonds until the end of next year, which would make it more flexible to refinance debt while implementing a merger with Chrysler.

The Italian carmaker had EUR10 billion of net industrial debt at the end of the first quarter.

The board also formally approved the merger between Fiat and Chrysler to create Fiat Chrysler Automobiles NV. Fiat said in a statement that the bond issuances are designed to manage the group’s consolidated debt in view of older bond issuances due between now and the end of 2015.

Fiat fully acquired Chrysler, paving way to a merger that would create a carmaker with synergy large enough to challenge global carmakers like Toyota Motor Corp., General Motors, and Volkswagen AG. The approval of the bond issue is in line with amounts approved by Fiat's board in last few years.

Fiat Chrysler chief executive Sergio Marchionne recently reaffirmed the carmaker’s 2014 profit goals, prompted by gains at its Maserati luxury unit that allowed it to offset weakness in Brazil.

Fiat also reiterated a plan to transfer its primary listing to the New York Stock Exchange once a shareholders meeting approve the merger in the third quarter, according to a statement.

Topics: fiat, chrysler

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries