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:

Comments

Login or Create new account to add a comment!

Recommended

Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
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