According to three anonymous people briefed on the matter, Chrysler has a tentative deal with investors to refinance its U.S. and Canadian government loans. The deal will allow the Auburn Hills automaker to repay $7.5 billion in bailout money from the two governments.
The sources said that Chrysler will refinance the government loans with $2.5 billion in bank loans and $3.5 billion by selling bonds. Fiat will then pump in $1.3 billion to raise its stake in Chrysler. The three insiders said that all the investors are lined up and “bankers are ironing out details.”
Chrysler will pay the U.S. $5.9 billion and $1.6 billion to Canada and Ontario.
Official details are expected tomorrow.
– By: Omar Rana