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

Recommended

Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 2017
The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 25, 2017
The 2018 Jaguar E-Pace is the leaping cat’s first venture into the compact SUV segment, and sure enough, it didn’t take long before an artist rendered a wilder version of...
by - July 25, 2017
Good news for Audi EU5 and EU6 diesel car owners in Europe. They can now update their cars to fit six-cylinder or eight-cylinder TDI engines through a retrofit program, and...
by - July 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