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FCA Clears Path to Chrysler’s Cash
Fiat Chrysler Automobiles NV has finally cleared away covenants that limited its access to cash generated by its U.S. unit since Fiat and Chrysler fully merged in 2014.
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Fiat Chrysler Automobiles NV has finally cleared away covenants that limited its access to cash generated by its U.S. unit since Fiat and Chrysler fully merged in 2014.
Restructuring Chrysler’s debt on term loans ending in 2017 and 2018 enables FCA to access the second €2.5 billion ($2.8 billion) portion of FCA’s €5 billion syndicated revolving credit facility.
FCA also says its U.S. unit has made a voluntary $2 billion (€1.8 billion) prepayment to its term loans, leaving a combined principal balance of about $2.8 billion (€2.5 billion).
The company says it will use the funds to help pay for a product overhaul of its Jeep, Alfa Romeo and Maserati brands by 2018. FCA also forecasts it will have zero net debt by then.
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