FCA gathers more cash from bonds offering image

Fiat Chrysler Automobiles, buy cialis the world’s seventh largest automaker, unhealthy has an ambitious five-year expansion plans that includes investments of almost $50 billion.

And because automakers actually don’t have such massive cash hoards lying around, viagra order the financing needs to come from some place. For example, the latest move by FAC was to gather $3 billion from a debt offering, announcing the raised amount would be used to pay off some of the debt outstanding for FCA US – formerly known as Chrysler Group LLC – and also for “general corporate purposes.” The carmaker recently announced it had gathered enough commitments to reach $3 billion in five and eight-year bonds, using the proceeds to finish up some outstanding debt. The company announced it had gathered $1.5 billion by selling bonds at a 4.5 percent rate that need to be paid before or in 2020. Another $1.5 billion in bonds was gathered at a 5.25 percent interest rate, with the debt payable on or before 2023. All the money is expected to enter the firm’s “coffers” these days.

The automaker needs to attend to some of the $12.7 billion in debt currently held by FCA US, the company that was best known as Chrysler – and is now just a subsidiary of the recently merged Fiat Chrysler Automobiles NV. The company’s outstanding debt includes a $3.1 billion loan expiring in 2017, one worth $1.7 billion due in 2018 and $6 billion in bonds that expire in 2019 and 2021. FCA chief executive officer Sergio Marchionne is also committing to a refinance strategy for the debt because some of the previous loans also include restrictions over the automaker’s capital allocation plans.