Chrysler says it will repay government by August
Assuming market conditions remain favorable and a bond sale goes well, the new Chrysler — less than two years removed from bankruptcy — says it will have the federal government paid back for loans it made to keep the company afloat by the time August rolls around.
In a statement prior to CEO Sergio Marchionne hosting a visit from U.S. Treasury Secretary Timothy Geithner later today, Chrysler said it plans to repay its government loans with a new term loan facility and newly issued debt securities that will be sold to institutional investors in a private offering.
The private debt offering is exempt from registration under the U.S. Securities Act and allows Chrysler to forego filing a formal prospectus publicly or seek SEC approval.
Chrysler will also use some of the $1.27 billion that it will receive from partner Fiat SpA to purchase an additional 16 percent stake in Chrysler to pay the loans in full as well as any related fees and expenses.
The Treasury Department has already received a sizable percentage of its loans to General Motors back as well, mostly through the sale of stock used as collateral when the company went public again late last year.
[...] 4-29-2011: Tried to kill Chrysler two years ago… which is now going to pay back all its government [...]
[...] to kill Chrysler two years ago… which is now going to pay back all its government [...]