Fiat Industrial will sell up to $3B of bonds to refinance loan, sources say

Article by Christian A., on January 30, 2011

Sources say that Fiat Industrial S.p.A. plans to sell up to 2.2 billion euros ($3 billion) of bonds to refinance a loan arranged in December. Fiat Industrial, the trucks and tractors unit, was separated from Fiat S.p.A. earlier this month.

The sources also said that Fiat Industrial could sell the bond as early as this month and that Fiat’s eight loan arrangers are working on the sale.

As part of a plan to focus on car production, Fiat completed a separation of its industrial operations this month.

The 12 analysts surveyed by Bloomberg said that on average, Fiat could report fourth-quarter net income of 198 million euros from a 281 million-euro loss a year earlier on sales of cars in Brazil and Iveco trucks and Case New Holland tractors. Notably, these estimates were made before the spinoff.

Last month, Barclays Plc, BNP Paribas SA, Credit Agricole CIB, Intesa Sanpaolo SpA, Societe Generale SA, Royal Bank of Scotland Group Plc, Citigroup Inc. and UniCredit SpA arranged a financing package of 4.2 billion euros for Fiat Industrial.

Included in this package is a three-year 2 billion-euro revolving credit facility with a syndicate of 23 banks and a 2.2 billion-euro term facility with a maturity of one year and one-year extension at the company's option which was not syndicated. One source said that it’s possible the bond sale will be split into two tranches. [via autonews - sub. required]

Topics: fiat, loan

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 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