Fiat Seeking $10 Billion Loan to Complete Chrysler Merger
Fiat is readying a loan for as much as $10 billion to purchase the remaining 41.5 percent of Chrysler from the UAW’s retiree health-care trust.
The plan is to utilize the funds to not only complete the merger, but to refinance the two automakers’ debts. The Italian automaker is in discussions with Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc. and BNP Paribas SA in hopes of making it all work. Marchionne had confirmed that Fiat was in discussion with the banks earlier this year at the 2013 Geneva Motor Show.
While no final deal has been signed just yet, Marchionne hopes to complete the purchase by the end of the summer in order to combine the two manufacturers into a global automaker to rival the likes of General Motors and Volkswagen AG.
According to estimates, Fiat could pay as much as $3.5 billion for the remaining stake in Chrysler pending the court dispute and the price set for a portion of the shares Fiat is seeking to purchase.
[Source: Automotive News]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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