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Ferrari borrows $2.6 billion to finance FCA spinoff

Ferrari announced Monday that it is borrowing about $2.6 billion to finance its spinoff from Fiat Chrysler Automobiles. Here's how it breaks down: Ferrari NV, the automaker's parent company based in the Netherlands, is taking out loans totaling 2.5 billion euros. That's equivalent to $2.64 billion at current exchange rates, and is divided between a term loan of $2.12 billion and a revolving credit facility of $529 million. The larger term loan "will be used to refinance indebtedness owing to Fiat Chrysler Automobiles," among other purposes. That ought to constitute the lion's share of the $2.38 billion which the Prancing Horse marque was, according to reports last year, slated to pay its current parent company in order to help FCA fund its ambitious growth plans. The separate line of credit is earmarked "to be used from time to time for general corporate and working capital purposes of the Ferrari group." Though Ferrari is not expected to take any other Fiat Chrysler properties with it, the "group" in this case would include its various financial services and distribution arms around the world that may have been separately incorporated. As noted in the statement below, the financial arrangement "represents a further step towards the separation of Ferrari from the FCA Group," following the separate stock issues from both companies as independent from each other. FERRARI N.V. SIGNS ˆ2.5 BILLION SYNDICATED CREDIT FACILITY Ferrari N.V. (NYSE: RACE) ("Ferrari") announced today that it has entered into a ˆ2.5 billion syndicated loan facility with a group of ten bookrunner banks. The facility comprises a bridge loan (the "Bridge Loan") and a term loan (the "Term Loan") of ˆ2 billion in aggregate and a revolving credit facility of ˆ500 million (the "RCF"). Proceeds of the Bridge Loan and Term Loan will be used to refinance indebtedness owing to Fiat Chrysler AutomobilesN.V. (NYSE: FCAU) ("FCA") and other indebtedness and for other general corporate purposes. Proceeds of the RCF may be used from time to time for general corporate and working capital purposes of the Ferrari group. The Bridge Loan has a 12 month maturity with an option for Ferrari to extend once for a six-month period. Ferrari intends to refinance the Bridge Loan prior to its maturity with longer term debt, including through capital markets or other financing transactions. The Term Loan, which comprises a majority of the total facility, and the RCF each have a maturity of five years.

2015 Chrysler 200 production gets underway [w/videos]

Chrysler announced recently that it has added some 800 new jobs at its Sterling Heights Assembly Plant (SHAP) to support the production of its all-new 2015 Chrysler 200 sedan. Total employment at the Sterling Heights, MI plant grows to almost 2,800 with the hires, an impressive figure for a plant that was slated for closure in 2010.
Speaking to a crowd of employees and community leaders, Fiat-Chrysler CEO Sergio Marchionne was on hand to celebrate the kick-off of 200 production last week. "We're making a big bet on its success," said Marchionne of the sedan, "we've invested nearly a billion dollars in this facility."
That billion-dollar bill has been used to construct a spanking new paint shop, install a new body shop and install "machinery, tooling and material-handling equipment" according to the Chrysler press release. The company says that SHAP now runs to nearly five million square feet of manufacturing space - loads of room for all the new employees to do their thing - and that the facility can handle multiple vehicles on two unique architectures.

Chrysler to reveal next minivan at 2016 Detroit Auto Show

All eyes in the industry are presently fixed on this year's Detroit Auto Show, but over at Fiat Chrysler Automobiles, they're already looking towards next year's show. That's when the Italian-American automaker says it'll unveil the next Chrysler minivan. The announcement, made on the FCA Corporate Twitter feed, promises that the next Pentastar minivan will debut in January 2016, which (along with the hashtag NAIAS) suggests the next-generation family hauler will debut at the Detroit show next year. Auburn Hills is expected to replace the current Chrysler Town & Country and Dodge Grand Caravan with two all-new models: one keeping the minivan form, and the other shifting into more of a crossover. Just which nameplate gets the new form factor, and which will debut at Cobo next year, we don't know. Odds are good that it'll be the minivan not the CUV, though. Chrysler's minivan has been a winning business for the Detroit automaker, pioneering the segment, outselling the competition and marketing around the world under more brands and nameplates than just about anything else in the industry. The vehicle has been sold as the Dodge Caravan, Chrysler Town & Country, Chrysler Voyager, Plymouth Voyager, Lancia Voyager, Ram Cargo Van and Volkswagen Routan, to say nothing of long-wheelbase Grand versions of many of the aforementioned nameplates. News Source: FCA via Twitter Detroit Auto Show Chrysler Dodge Minivan/Van Detroit 2016 Detroit Auto Show chrysler town and country dodge grand caravan dodge caravan