The Car and Truck Fleet and Leasing Management Magazine

Chrysler Group to Repay U.S. and Canadian Government Loans

April 28, 2011

AUBURN HILLS, MI - Chrysler Group LLC announced it intends to repay in full the outstanding obligations under the loans provided to Chrysler Group by the U.S. Department of the Treasury and the Canadian federal and Ontario governments.

The company stated it intends to complete the repayment during the second quarter of 2011 from proceeds of a new term loan facility and newly issued debt securities to be offered and sold to institutional investors in a private offering exempt from registration under the U.S. Securities Act of 1933.

Chrysler Group intends to use the net proceeds of the term loan and the offering, together with the proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The completion of the offering, the credit facilities and the equity investment by Fiat under its call option are expected to occur concurrently.

The debt securities will be offered and sold in reliance on an exemption from registration under the Securities Act. The debt securities have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration.

Chrysler said this news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

DUI or Driving Under the Influence (sometimes called DWI or Driving While Intoxicated) is a criminal offense in most states (most countries, actually). The substance can be alcohol or drugs, which is why it's not merely called "drunk driving" anymore.

Read more

Up Next

More From The World's Largest Fleet Publisher