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

Bimmerpost has posted several cool pictures of the new BMW G30 540i and the new G31 generation BMW 5-Series Touring, with both wearing the brilliant Rhodonite Silver Individual colour. The...
by - October 23, 2017
A few years ago, Lotus tried to take on Porsche. They had a five-car plan to go against competitors like Ferrari and Aston Martin. Though it did not go well,...
by - October 23, 2017
To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 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