Fiat Chrysler Automobiles (FCA) announced today that it has successfully completed the syndication to a group of thirteen banks (inclusive of the two original underwriting banks) of the credit facility entered into on March 25th (“Credit Facility”). We talked about the €3.5 billion ($3.8 billion USD) in addition to existing credit facilities of $8.4 billion the company already has. Other Detroit automakers took similar measures due to shut down manufacturing plants and losing revenue as demand slumps as the COVID-19 (or Coronavirus) crisis continues.
The Credit Facility will be available for general corporate purposes and for working capital needs of the Group and is structured as a bridge facility to support the Group’s access to international capital markets. It may be drawn in a single tranche of €3.5 billion with an initial 12-month term which can be extended at the Group’s option for an additional 6-month term on the first anniversary of the signing.
The successful syndication confirms the strong support that FCA continues to enjoy from its relationship banks and supports FCA’s continued access to international capital markets in the current extraordinary circumstances. FCA has expressed its interests to restart some of its production in North America (U.S. & Canada) on May 4th.