Sources told Automotive News that Chrysler Group LLC will repay about $7.5 billion in U.S. and Canadian government loans on May 24 to strengthen its financial position.
Chrysler will reportedly use $3.5 billion in bonds, a $2.5 billion term loan and about $1.3 billion in cash from Fiat, although no official word will come from Auburn Hills until the actual announcement. By then, Chrysler will have detailed the terms of its $3.5 billion bond offering.
Refinancing the government loans will help the automaker lower its interest payments while allowing Fiat to boost its stake from 30 to 46 percent.
Chrysler will still owe the Obama administration about $2 billion following its rescue from bankruptcy in 2009, the Associated Press reported. However, part of that amount could be recouped when the government sells its 8.6-percent ownership stake.
Source : Automotive News
Chrysler will reportedly use $3.5 billion in bonds, a $2.5 billion term loan and about $1.3 billion in cash from Fiat, although no official word will come from Auburn Hills until the actual announcement. By then, Chrysler will have detailed the terms of its $3.5 billion bond offering.
Refinancing the government loans will help the automaker lower its interest payments while allowing Fiat to boost its stake from 30 to 46 percent.
Chrysler will still owe the Obama administration about $2 billion following its rescue from bankruptcy in 2009, the Associated Press reported. However, part of that amount could be recouped when the government sells its 8.6-percent ownership stake.
Source : Automotive News