Fiat seeking to expand a credit line to as much as $2.14 billion

Article by Christian Andrei, on May 18, 2011

Fiat S.p.A. will be seeking to increase a credit line to as much as $2.14 billion (1.5 billion euros) after raising its share in Chrysler, according to three people who are familiar with the situation but who have requested anonymity due to the confidentiality of the matter.

The company will be in talks with banks after it completes the purchase of an additional 16 percent Chrysler share for $1.27 billion, the insiders revealed.

Sergio Marchionne, CEO of both Chrysler and Fiat, will be gaining control of the American vehicle manufacturing company two years quicker than expected.

Specifically, he aims to increase the stake of Fiat to 46 percent in the second quarter from 30 percent after completing transactions in order to repay the $7.5 billion Canadian and U.S. government loans of Chrysler.

The loan will replace a 1 billion-euro revolving credit line that expires in February next year. Under the new facility, Fiat intends to work with UniCredit S.p.A., which arranged the existing loan, Intesa Sanpaolo S.p.A., and Credit Agricole SA.

The company may also introduce new lenders, according to two of the three insider sources. Fiat is expecting to complete the agreement by July, but a transaction could take longer depending on the conditions of the market, one of the three insider sources stated.

A Fiat spokesperson declined to make a comment on the financing plan of the company. The company, which had 13.1 billion euros of liquidity at the end of March this year, has been bolstering its finances to prepare to take a majority stake in Chrysler. Last month, Fiat sold 1 billion euros of five-year bonds, which is its first public transaction since 2009.

Topics: fiat

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The Chevrolet Cruze is coming to Australia. But it won’t be known as the Chevrolet Cruze. Instead, it will bear the Holden badge and get the Astra moniker. The 2017...
by - January 17, 2017
As expected, four years after the current generation of the BMW 4 Series was introduced in 2013 with the BMW 4 Series Coupe, the German premium carmaker is implementing a...
by - January 17, 2017
As BMW continues to pursue its plans for the coming years, President-elect Donald Trump gave out a warning to car manufacturers to prevent them from exporting their cars to the...
by - January 17, 2017
Audi recently unveiled its Q8 full-size coupe SUV concept at the 2017 North American International Auto Show. Bearing the traditional functionality of an SUV and the sexy and sporty styling...
by - January 17, 2017
The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 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