FCA pays off all loans back by "Chrysler" assets (except Mexico),Mopar is now mortgage free!

[AlexB]

Mortgage free for the first time since Daimler's "sale" (Dump) of Chrysler back in the summer of 2007 to Cerberus's hands.
On December 31, 2018 the remaining payment of Tranche B Term loan.
The Tranche B term loan was issued as the the second refinancing of the Bailout loans.
The terms of Tranche made it (kind of)the mother of all FCA debt it secured by all of Chrysler/FCA U.S. LLC

"At December 31, 2017, €836 million (€948 million at December 31, 2016), which included accrued interest, was outstanding under FCA US's Tranche B Term Loan maturing December 31, 2018 (the “Tranche B Term Loan due 2018”)."

The Tranche B Term Loan due 2018 is secured by a senior priority security interest in substantially all of FCA US’s assets and the assets of its U.S. subsidiary guarantors, subject to certain exceptions. The collateral includes 100 percent of the equity interests in FCA US's U.S. subsidiaries and 65 percent of the equity interests in certain of its non-U.S. subsidiaries held directly by FCA US and its U.S. subsidiary guarantors.

The credit agreement that governs the Tranche B Term Loan due 2018 includes a number of affirmative covenants, many of which are customary, including, but not limited to, the reporting of financial results and other developments, compliance with laws, payment of taxes, maintenance of insurance and similar requirements. The credit agreement also includes negative covenants, including but not limited to: (i) limitations on incurrence, repayment and prepayment of indebtedness, (ii) limitations on incurrence of liens, (iii) limitations on swap agreements and sale and leaseback transactions, (iv) limitations on fundamental changes, including certain asset sales and (v) restrictions on certain subsidiary distributions. In addition, the credit agreement requires FCA US to maintain a minimum ratio of “borrowing base” to “covered debt” (as defined), as well as a minimum liquidity of U.S.$3.0 billion(€2.5 billion). Furthermore, the credit agreement also contains a number of events of default related to: (i) failure to make payments when due; (ii) failure to comply with covenants, (iii) breaches of representations and warranties, (iv) certain changes of control, (v) cross–default with certain other debt and hedging agreements and (vi) the failure to pay or post bond for certain material judgments.

https://www.sec.gov/Archives/edgar/...123120f.htm#s96D72AF339DA53BC8961C7EEA7F6B577

With the payment of Tranche B on December 31, FCA U.S. LLC no longer has any Secured debt outside of Mexican Government-Backed loan for the Mexican plants.

It should be noted when Ford paid off its Secured debt backed by all Ford assets outside of Land Rover-Jaguar, it threw a party with the media about the release of trademark titles (https://www.nytimes.com/2012/05/23/business/a-prized-logo-is-returned-to-ford.html)so when will FCA will get it own media party for the release of Jeep trademark title (let alone Chrysler name itself)?

Great news in any case!
Happy 2019 to all!

 

[cygnus]

Good to see. 2019 is going to be an interesting year - unfortunate that Sergio isn't around to see the success that FCA continues to have. Manley has big shoes to fill.