Fiat Plans to Issue $1 Billion Bond to Repay Credit Line
- Carmaker could issue the bond as soon as end of this month
- Fiat Chrysler agreed to merge with French rival PSA last year
New vehicles sit parked outside the idled Fiat Chrysler Automobiles NV Jefferson North Plant in Detroit, Michigan, on March 23.
Photographer: Anthony Lanzilote/BloombergThis article is for subscribers only.
Fiat Chrysler Automobiles NV plans to repay part of a multi-billion euro credit facility via a new bond sale of up to 1 billion euros ($1.1 billion), in a move that will signal the debt market’s level of confidence in the Italian-American carmaker.
Fiat Chrysler will likely issue a bond worth between 750 million euros to 1 billion euros by the end of month, people familiar with the matter said, to repay the first tranche of a loan obtained in March. Ultimately, the company aims to repay the whole 3.5 billion euros via bond issuance. The sale will be its first in Europe for four years.