/ Chrysler, Industry, News / Report – Chrysler sets price guidance on refinancing loan

Report – Chrysler sets price guidance on refinancing loan

Linked In Share
Report – Chrysler sets price guidance on refinancing loan

Sources said Chrysler Group LLC set pricing guidance on a $2 billion term loan as part of a $4.7 billion refinancing of the company’s VEBA Trust note.

The JP Morgan-led loan is split between a $250 million incremental term loan B that will be combined with the company’s existing term loan B due May 2017, and a new $1.75 billion term loan B maturing in December 2018. The loans are expected to price at LIB+275, with a 75bp Libor floor. Original Issue Discounts (OID) are 99.75 on the incremental term loan B and 99.5 on the new loan maturing in 2018.

A bank meeting is set for 1 p.m. ET on Thursday to launch the credit facility that refinances the VEBA note, which was part of the company’s settlement with the United Auto Workers Union (UAW). The package also includes up to $2.7 billion in senior debt securities. The refinancing follows the completion of Fiat S.p.A.’s acquisition of Chrysler. Last week, Fiat bought from the VEBA Trust the remaining 41.5 % stake in the US automaker that it did not already own.

The Voluntary Employees Beneficiary Association Trust note, also known as the VEBA Trust note, was issued by the automaker as part of a settlement agreement with the UAW in June 2009. The senior unsecured note had a face value of $4.587 billion. The note was slated to back the medical costs of Chrysler’s union-member retirees.

Fiat’s acquisition of the U.S. automaker, finalized on January 21, consisted of a special distribution paid by Chrysler Group of $1.9 billion, and a cash payment by Fiat North America LLC to the VEBA Trust of $1.75 billion. Chrysler Group funded the special distribution from available cash on hand. Fiat also funded its $1.75 billion payment from available cash.

Via Reuters

by Aurel Niculescu (my Google+) - Thursday, January 30th, 2014 - filed under Chrysler, Industry, News. Image credit: .
Linked In Share
Related Articles
2009 bankruptcy loan refinancing veba


Discuss: Report – Chrysler sets price guidance on refinancing loan

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

McLaren-Honda and Alonso will win together – Berger
McLaren-Honda and Alonso will win together – BergerMar.3 (GMM/Inautonews.com) Gerhard Berger has played down McLaren-Honda's testing troubles, insisting the historic pairing will ...
Coulthard – can Ricciardo cope with Kvyat defeat?
Coulthard – can Ricciardo cope with Kvyat defeat?Mar.3 (GMM/Inautonews.com) Former Red Bull driver David Coulthard has admitted he will be keeping a keen eye on Daniel Ricciardo ...
2015 Geneva Motor Show LIVE: Lexus LF-C2 Concept
2015 Geneva Motor Show LIVE: Lexus LF-C2 ConceptAfter making its official public debut last autumn during the 2014 Los Angeles Auto Show, the cabrio Lexus LF-C2 concept has also ...
2015 Geneva Motor Show LIVE: Koenigsegg Regera
2015 Geneva Motor Show LIVE: Koenigsegg RegeraThe highly anticipated, teased, spied and talked about Koenigsegg Regera has finally made its official public appearance on the ...
2015 Geneva Motor Show LIVE: Mitsubishi L200
2015 Geneva Motor Show LIVE: Mitsubishi L200Known for its off-road prowess, Mitsubishi has been eerie silent on the European market after the six-year slump that led to ...
2015 Geneva Motor Show LIVE: 2016 Land Rover Range Rover Evoque
2015 Geneva Motor Show LIVE: 2016 Land Rover Range Rover EvoqueAfter previously unveiling online the facelifted 2016 Evoque, the British off-road specialist Land Rover has taken the wraps off ...
2015 Geneva Motor Show LIVE: Land Rover Defender Adventure Edition
2015 Geneva Motor Show LIVE: Land Rover Defender Adventure EditionThe 2015 edition of the Switzerland-based Geneva motor show has brought us a historic moment for the off-road biased Land Rover ...
2015 Geneva Motor Show LIVE: SsangYong Tivoli
2015 Geneva Motor Show LIVE: SsangYong TivoliThe SsangYong Tivoli sub-compact crossover has been officially presented to the public, in an European premiere, during the 2015 ...
2015 Geneva Motor Show LIVE: Pininfarina Sergio is now yellow
2015 Geneva Motor Show LIVE: Pininfarina Sergio is now yellowThe Pininfarina Sergio has been finished in an appealing yellow shade for the 2015th edition of the Geneva Motor Show. The ...
2015 Geneva Motor Show LIVE: McLaren P1 GTR
2015 Geneva Motor Show LIVE: McLaren P1 GTRThe McLaren P1 GTR has been officially presented to the public, in a premiere, during the 2015 Geneva Motor Show. The direct ...
2015 Geneva Motor Show LIVE: Dacia Duster 10th Anniversary Edition
2015 Geneva Motor Show LIVE: Dacia Duster 10th Anniversary EditionDuring the 2015 edition of the Geneva Motor Show the Romanian brand Dacia – owned by Renault – has opted to celebrate in ...
2015 Geneva Motor Show LIVE: Magna Steyr Mila Plus Hybrid Concept
2015 Geneva Motor Show LIVE: Magna Steyr Mila Plus Hybrid ConceptThe 2015th edition of the Geneva Motor Show has recently seen the debut of the Magna Steyr Mila Plus Hybrid Concept, in a ...
2015 Geneva Motor Show LIVE: Koenigsegg Agera RS
2015 Geneva Motor Show LIVE: Koenigsegg Agera RSThe newest addition to the Koenigsegg hypercar lineup is called the Agera RS and this has been officially presented to the public ...
2015 Geneva Motor Show LIVE: 2017 Ford GT supercar
2015 Geneva Motor Show LIVE: 2017 Ford GT supercarFord has officially pulled the wraps off the brand new 2017 GT supercar in an European premiere, during the 2015 Geneva Motor ...
2015 Geneva Motor Show LIVE: Alfa Romeo 4C Spider
2015 Geneva Motor Show LIVE: Alfa Romeo 4C SpiderAfter its crucial North American debut earlier this year, the Italian premium brand has also decided to cater for the home market ...
Read more automotive news


2015 Geneva Motor Show Coverage

Lexus LF-C2 Concept Live Geneva 2015 01
Koenigsegg Regera Live Geneva 2015 00
Mitsubishi L200 Live Geneva 2015 00
Range Rover Evoque Facelift Live Geneva 2015 01
Land Rover Defender Adventure Edition Live Geneva 2015 01
SsangYong Tivoli Live 01
Pininfarina Ferrari Sergio Live Geneva 2015 22
McLaren P1 GTR Live Geneva 2015 01
Dacia Duster 10th Anniversary Live Geneva 2015 01
Magna Mila Plus Live Geneva 2015 00
Koenigsegg Agera RS Live Geneva 2015 00
Ford GT Live Geneva 2015 00

More automotive from inautonews
After making its official public debut last autumn during the 2014 Los Angeles Auto Show, the cabrio Lexus LF-C2 concept has also debuted for the European audience, during the 2015 edition of the Geneva Motor Show. The “topless” concept is Lexus’ statement as to its upcoming styling design ...
read more
Inautonews Editors Section
Geneva Motor Show 2015 – the full car guide
Geneva Motor Show 2015 – the full car guideIt can only get bigger and better. The 85th International Motor Show in Geneva will finally make its “carsy” debut on the 3rd of March. The show ...
Test Drive: Ford Tourneo Courier 1.0 EcoBoost – Serenity
Test Drive: Ford Tourneo Courier 1.0 EcoBoost – SerenityFord has been battling losses for years in its Ford of Europe business, but judging by the model lineup of the second largest US automaker you would ...
Test Drive: Renault Megane GT Line Energy 1.2 TCe
Test Drive: Renault Megane GT Line Energy 1.2 TCe Besides the Megane GT Line diesel, tested here, Renault is also offering a petrol version of the model which is using the 1.2-liter turbo. But is ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Dodge Durango and Jeep Grand Cherokee for fuel pump problemsFiat Chrysler Automobiles (FCA) has announced a recall covering the Dodge Durango and Jeep Grand ... Recall roundup: Cadillac ATS and Chevrolet Impala for two separate issuesThe NHTSA has added two recalls from General Motors for the Cadillac ATS and the Chevrolet Impala ...
Safety Section