MILAN (Reuters) - The U.S. unit of Fiat Chrysler Automobiles (FCHA.MI) will redeem secured senior notes maturing in 2021 for $3.08 billion and terminate an undrawn $1.3 billion revolving credit facility as the carmaker seeks to gain full access to the subsidiary’s cash.
After completing a merger with its U.S. unit last year and creating FCA, the heavily-indebted carmaker has been seeking to restructure Chrysler’s finances to be able to fully access the unit’s cash, so far limited by a cap on dividends and debt covenants.
In a statement on Friday, FCA said the 2021 notes will be redeemed using cash. The revolving facility, which would have matured in May next year, will be replaced by a tranche of the 5 billion euro ($5.33 billion) syndicated revolving credit facility FCA entered into in June.
Reporting by Agnieszka Flak; editing by Francesca Landini