Sergio Marchionne close to inking refinancing deals for Fiat and Chrysler

Article by Anita Panait, on June 17, 2013

Sergio Marchionne, chief executive of both Fiat SpA and Chrysler Group LLC, is nearing to close refinancing deals for both carmakers ahead of a plan to combine them, people privy with the matter told Bloomberg. Marchionne will ink an agreement with nine banks this month to refinance EUR1.95 billion ($2.6 billion) in Fiat credit, two sources privy with the matter told Bloomberg.

Another source divulged that Marchionne is also seeking to cut the rate on a $2.95 billion term loan at Chrysler. Fiat, which currently holds a 58.5-percent stake in Chrysler Group, is planning to buy out the rest of the stakeholders to create a company large enough to challenge General Motors Co. and Volkswagen.

Fiat is holding talks with banks for up to $10 billion in funding for the deal and for refinancing the carmakers’ debt, sources familiar with the matter disclosed last month.

Gabriele Gambarova, an analyst at Banca Akros, remarked to Bloomberg that they see the new as a positive one as the acquisition of Chrysler minorities may materialize soon. Gambarova noted that reshaping Chrysler’s debt is important since current conditions prevent Fiat from gaining access to Chrysler cash.

The sources said the two refinancing deal may be signed as early as June 21, 2013. The pool of banks Fiat is talking with includes Barclays Plc, Citigroup Inc., UniCredit SpA and Mediobanca SpA. Marchionne also wants to raise funds to help pay for the acquisition of the 41.5-percent Chrysler stake currently held by the UAW's retiree health-care trust. UBS said this week that Fiat may shell out $4.5 billion to acquire the stake. [source: automotive news - sub. required]

If you liked the article, share on:

Pin It

Comments

Recommended

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
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 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