Ferrari announced that it has entered into a €2.5 billion syndicated loan facility with a group of ten bookrunner banks for refinance debt owed to Fiat Chrysler Automobiles.
The facility comprises a bridge loan and a term loan of 2 billion euros in aggregates and a revolving credit facility of 500 million euros. Proceeds of the Bridge Loan and Term Loan will be used to refinance indebtedness owing to Fiat Chrysler Automobiles and other indebtedness and for other general corporate purposes. Proceeds of the revolving credit may be used from time to time for general corporate and working capital purposes of the Ferrari group. The Bridge Loan has a 12-month maturity with an option for Ferrari to extend it once for a six-month period.
The company intends to refinance the Bridge Loan prior to its maturity with longer term debt, there including through capital markets or other financing transactions. The Term Loan, advice which comprises a majority of the total facility, physician and the revolving credit facility have each a maturity of five years. The facility is limited in recourse to Ferrari and any Ferrari subsidiaries which borrow under the facility, and it is without recourse to any other part of the FCA group. This transaction represents a further step towards the separation of Ferrari from the FCA Group.