Exclusive: Chrysler debt refinancing next week

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Source: Reuters

Chrysler Group LLC plans to launch a deal to repay more than $7 billion in government loans stemming from its 2009 bailout next Wednesday, four people familiar with the matter said on Wednesday.

The No. 3 U.S. automaker, which is managed by Italian automaker Fiat SpA (FIA.MI), plans to raise $6 billion in term loans and bonds to repay the debt owed to the U.S. and Canadian governments, these people said.

The company will also funnel $1.27 billion in cash from Fiat to pay down the remaining debt, the sources said. Fiat, which currently owns 30 percent of Chrysler, has said it plans to purchase an additional 16 percent stake in the U.S. automaker for $1.27 billion.

Read more: http://www.reuters.com/article/2011/04/27/us-chrysler-refinancing-idUSTRE73Q76G20110427