Chrysler seals $4.8 bln debt refinancing, to save $400 mln
MILAN Feb 5 (Reuters) - Chrysler Group is set to raise about $4.8 billion in debt that will use to repay an existing bond, allowing the U.S. car maker owned by Italy's Fiat to save around $134 million a year in interest costs between 2014 and 2016.
Fiat Chrysler said on Wednesday that U.S. unit Chrysler, now merged into the new FCA group, had priced $1.375 billion in senior debt due in 2019 to yield 6.165 percent. It also priced a $1.38 billion 2021 senior bond to yield 6.433 percent. Both issues are top-ups of existing bonds.
Chrysler also plans to increase an existing term loan by $250 million and to sign a new $1.75 billion secured term loan facility.
The car maker will use all proceeds to repay a bond issued in June 2009 to healthcare trust VEBA for $4.587 billion and pocket total savings of $402 million by 2016.