MILAN Feb 5 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
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.