More than six years ahead of schedule, Chrysler Group fulfills promise
to taxpayers and repays original government loans totaling $6.7
billion, in addition to $1.8 billion of interest and other
Intervention by U.S. and Canadian governments and strategic alliance
with Fiat leads to 16 all new or significantly refreshed vehicles
currently in dealerships; more than $3 billion in facility upgrades;
and increased employment with the hiring of 6,000 Chrysler Group
Company's return to profitability and double-digit worldwide sales
increases show new product lineup gaining momentum in marketplace
AUBURN HILLS, MI, May 24, 2011 /CNW/ - Chrysler Group LLC today
announced the repayment of $7.6 billion in outstanding U.S. and
Canadian government loans following the completion of new refinancing
transactions. The original loans were repaid in full, more than six
years ahead of schedule, along with the payment of accrued interest and
Today, the Company made payments of $5.9 billion to the U.S. Treasury
(UST) and $1.7 billion to Export Development Canada (EDC) to retire the
loans granted when Chrysler Group began operations in June 2009. EDC is
the holding company through which the Canadian federal and Ontario
provincial governments extended loans to Chrysler Group.
The Company borrowed $5.1 billion from the UST and $1.6 billion from the
Canadian governments in June 2009 ($2.6 billion from the original loan
facilities was undrawn and the facilities will be canceled). In total,
Chrysler Group has paid the UST $6.5 billion and the EDC $2.0 billion,
including $1.8 billion in interest and additional consideration.
"Less than two years ago, we made a commitment to repay the U.S. and
Canadian taxpayers in full and today we made good on that promise,"
said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC.
"The loans gave us a rare second chance to demonstrate what the people
of this Company can deliver and we owe a debt of gratitude to those
whose intervention allowed Chrysler Group to re-establish itself as a
strong and viable carmaker.
"Paying back the loans, along with the financial community's investment
in our refinancing packages, marks another step in the Company
returning as a competitive force in the global automotive industry."
Chrysler Group confirmed the completion of new financing transactions
consisting of a term loan
totaling $3.0 billion, debt securities totaling $3.2 billion and a
revolving credit facility of $1.3 billion. The
new financing will save Chrysler Group an estimated $350 million a year
in interest expenses.
The Company used the net proceeds from the term loan and bonds, together
with $1.3 billion from an equity call option exercised by Fiat for an
incremental 16 percent fully diluted ownership interest, to repay the
government loans. The revolving credit facility remains undrawn.
Chrysler Group continues to have more than $10 billion in liquidity
after the refinancing and loan payoffs, which includes the undrawn
revolving credit facility.
"Everyone in the extended Chrysler Group family, from employees to union
partners to dealers and suppliers, have worked tirelessly to deliver on
our promises and to win back public trust in the Company and our
products," said Marchionne. "There is more work to be done as we remain
focused on fulfilling the goals outlined in our 2010-2014 business
Goldman, Sachs Co. advised Chrysler Group on structuring the financings
and Evercore Partners advised the Company's Finance Committee.
About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with
Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar and Fiat
vehicles and products. With the resources, technology and worldwide
distribution network required to compete on a global scale, the
alliance builds on Chrysler Group's culture of innovation, first
established by Walter P. Chrysler in 1925, and Fiat's complementary
technology that dates back to its founding in 1899.
Headquartered in Auburn Hills, Mich., Chrysler Group's product lineup
features some of the world's most recognizable vehicles, including the
Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat
contributes world-class technology, platforms and powertrains for
small- and medium-size cars, allowing Chrysler Group to offer an
expanded product line including environmentally friendly vehicles.
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