Chrysler buyout loan delayed but deal said on track

By Kevin Krolicki and Dena Aubin

DETROIT/NEW YORK (Reuters) - DaimlerChrysler AG's DCXGn.DE $7.4 billion deal to spin off Chrysler hit a speed bump on Wednesday when bankers were forced to postpone a $12 billion syndicated loan to finance the transaction.

DaimlerChrysler and Cerberus Capital Management, Chrysler's intended buyer, both said they were confident the landmark buyout would close as planned in this quarter.

Market sources told Reuters Loan Pricing Corp. that underwriters remained committed to providing the needed financing for the deal, which marks the first time that a buyout firm has taken over a major U.S. automaker.

The delay in the sale of the loan and higher rates for other Chrysler-related loans underscored a new skittishness in the debt market as lenders tighten access to cash. It also threatened to complicate pending asset sales that are part of the restructuring of the struggling U.S. auto industry.

"People thought there was an unlimited till of funds that can just flow into the auto industry. The reality is it's a little bit more complex," said Argus Research analyst Kevin Tynan. "I don't think any deals don't get done because of what's going on in the markets ... It's just a bit of a wake-up call."

In addition to the pending Chrysler deal, Ford Motor Co. (F.N: Quote, Profile, Research, Stock Buzz) is shopping around its British luxury brands Jaguar and Land Rover and General Motors Corp.(GM.N: Quote, Profile, Research, Stock Buzz) aims to complete a sale of its Allison Transmission unit.

Shares of GM and Ford both fell in response to news of the higher cost of closing the Chrysler deal. GM's shares declined 2.7 percent to $33.73, while Ford's stock dropped 3.5 percent to $7.97, both on the New York Stock Exchange.

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