Chrysler Group LLC has announced the repayment of $7.6 billion in outstanding US and Canadian government loans following the completion of new refinancing transactions.
The original loans were repaid in full, more than six years ahead of schedule, along with the payment of accrued interest and additional consideration.
The company has made payments of $5.9 billion to the US Treasury and $1.7 billion to Export Development Canada (EDC) to retire the loans granted when Chrysler Group began operations in June 2009 after emerging from bankruptcy. EDC is the holding company through which the Canadian federal and Ontario provincial governments extended loans to Chrysler Group.
“Less than two years ago, we made a commitment to repay the US and Canadian taxpayers in full and today we made good on that promise,” said Sergio Marchionne, chief executive officer of Chrysler Group LLC. “The loans gave us a rare second chance to demonstrate what the people of this company can deliver and we owe a debt of gratitude to those whose intervention allowed Chrysler Group to re-establish itself as a strong and viable carmaker.
Chrysler Group confirmed the completion of new financing transactions consisting of a term loan totaling $3.0 billion, debt securities totaling $3.2 billion and a revolving credit facility of $1.3 billion. The new financing will save Chrysler Group an estimated $350 million a year in interest expenses.
“Everyone in the extended Chrysler Group family, from employees to union partners to dealers and suppliers, have worked tirelessly to deliver on our promises and to win back public trust in the company and our products," said Marchionne. "There is more work to be done as we remain focused on fulfilling the goals outlined in our 2010-2014 business plan.”
