Fiat Chrysler U.S. unit redeems notes, replaces credit line

MILAN (Reuters) - The U.S. unit of Fiat Chrysler Automobiles will redeem secured senior notes maturing in 2021 for $3.08 billion and terminate an undrawn $1.3 billion revolving credit facility as the carmaker seeks to gain full access to the subsidiary's cash.

After completing a merger with its U.S. unit last year and creating FCA, the heavily-indebted carmaker has been seeking to restructure Chrysler's finances to be able to fully access the unit's cash, so far limited by a cap on dividends and debt covenants.

In a statement on Friday, FCA said the 2021 notes will be redeemed using cash. The revolving facility, which would have matured in May next year, will be replaced by a tranche of the 5 billion euro ($5.33 billion) syndicated revolving credit facility FCA entered into in June.

(Reporting by Agnieszka Flak; editing by Francesca Landini)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Diana Shipping withdraws bid to acquire Genco Shipping
• More than 100,000 without power in Hawaii as Lala downgraded to tropical storm
• Search teams comb rubble in Colombia nearly a week after quake as aid effort expands