Chrysler back to profit, announces refinancing transactions image

Chrysler group Llc has turned its first profit since leaving bankruptcy, helped by stronger sales of vehicles like the Jeep Grand Cherokee. Its first-quarter net income came to $116 million, compared with a net loss of $197 million a year earlier.

Revenue shot up 35 percent to $13.1 billion, spurred by the company’s 16 revamped models, including the Grand Cherokee and the Chrysler 300.

Also, the company said it plans to repay the loans — part of its 2009 bailout — by June, after launching a private debt offering to secure a lower interest rate, as early as this week.
Additionally, Fiat will purchase a larger share of Chrysler.

More precisely, Chrysler Group intends to use the net proceeds of the term loan and the Notes offering, together with the $1.3 billion in proceeds from the recently announced exercise by Fiat of an option to acquire an incremental 16% ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The completion of the Notes offering, the credit facilities and the equity investment by Fiat are expected to occur concurrently.