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Chrysler CEO Sergio Marchionne and President Barack Obama meet at Chrysler's Indiana Transmission Plant II

Remember a few months back when Chrysler/Fiat CEO Sergio Marchionne complained about the terms of the loans received from the government? "Shyster loans" is what he deemed them, a term for which he later had to apologize. But the answer was clear: if Marchionne and his compatriots don't like the terms of the loans offered from the public coffers, they were free to pay them back and refinance. And according to a statement released today from Chrysler headquarters in Auburn Hills, Michigan, that's precisely what they plan to do. And do soon, apparently.

The statement declares that Chrysler will pay back 100-percent of the loans taken out from the U.S. federal government, the Canadian federal government and the Ontario provincial government, sometime in the second quarter of 2011. That's the quarter we're currently in, by the way, meaning that if Chrysler sticks to the plan, the governments will be fully repaid by the end of June.

Of course, Chrysler hasn't recuperated all those funds from their revenues. Not just yet, anyway. Part of the money is coming from the increased shares which Fiat has bought in Chrysler, while the rest is coming from new (presumably privately secured) loans and debt securities that do not require registration under the Securities Act, which should help Chrysler refinance its debts more easily. Details in the press release after the jump.

[Source: Chrysler]
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Chrysler Group LLC Announces Refinancing Transaction

April 28, 2011 , Auburn Hills, Mich. - Chrysler Group LLC ("Chrysler Group") announced today that it intends, subject to market and other conditions, to repay in full the outstanding obligations under the loans provided to Chrysler Group by the U.S. Department of the Treasury and the Canadian federal and Ontario governments. Chrysler Group intends to complete the repayment during the second quarter of 2011 from proceeds of a new term loan facility and newly issued debt securities to be offered and sold to institutional investors in a private offering exempt from registration under the U.S. Securities Act of 1933.

Chrysler Group intends to use the net proceeds of the term loan and the offering, together with the proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The completion of the offering, the credit facilities and the equity investment by Fiat under its call option are expected to occur concurrently.

The debt securities will be offered and sold in reliance on an exemption from registration under the Securities Act. The debt securities have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Forward-Looking Statements

This document contains forward-looking statements that reflect management's current views with respect to future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project" and "should" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties including market conditions and the price and market for securities to be offered and other risks relating Chrysler Group's business and industry, including, but not limited to: the effective implementation of the Chrysler Group LLC 2010 – 2014 Business Plan outlined on November 4, 2009, including successful vehicle launches; industry SAAR levels; continued economic weakness, especially in North America, including continued high unemployment levels and limited available financing for our dealers and consumers; introduction of competing products and competitive pressures with may limit our ability to reduce sales incentives; and our ability to realize benefits from our industrial alliance with Fiat. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as the date on which it is made.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat, produces Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group's culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat's complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.


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    • 1 Second Ago
  • 22 Comments
      Markus514
      • 4 Years Ago
      They are simply refinancing with loans from different bankers. This way they are paying a lower rate of interest causing Chrysler to pay less in interest and getting the US Taxpayer off of their back. Good move if you ask me.
      AngeloD
      • 4 Years Ago
      Chrysler could generate a big wad of cash to help pay off the loans by... BUILDING THE FRIGGIN JEEP GLADIATOR PICKUP AND SELLING DIESEL WRANGLERS IN THE US. Just a thought Sergio.
      warren,
      • 4 Years Ago
      There goes Sergio Marchionne, rocking the unkempt hair, black crew-neck & blue-button down like a boss.
      black republican
      • 4 Years Ago
      I find it hilarious that the same conservascum that protests tooth and nail over bailing out the Big 3 can't show up to the White House to protest our continued wars in the Middle East. Which one costs us more (simple question). War in the middle east for the past 10 years, or, bailing out the Big 3? Something tells me the answer is bailing out the Big 3 cause I watch FAUX NOISE.
        DrEvil
        • 4 Years Ago
        @black republican
        " I find it hilarious that the same conservascum that protests tooth and nail over bailing out the Big 3 can't show up to the White House to protest our continued wars in the Middle East." Your statement is both naive and dishonest. Where were your when the Iraq war (the stupid war) basically ended? Our combat troops are done in Iraq. Most of them either transferred to the Afghanistan theatre, are already back stateside or is in the process of moving the TRILLIONS of $$$ worth equipment that we shipped over there, back stateside. Did you think we just pack the troops on a 747 and fly them back? http://www.washingtonpost.com/wp-dyn/content/gallery/2010/08/18/GA2010081806433.html "Combat Troops" is a civilian idiom that is redundant. ALL US troops are capable of "combat" it all depends on the mission. If you think the guided missile Frigate that I was assigned to, was incapable of "Combat" because we were rescuing crews from distressed ships or arresting drug runners, or bringing aid to hurricane victims, you're a fool. The troops left behind, has a primary mission to train the Iraqi military & police force. However, it has sufficient capability to wage war in defense of itself. We leave Afghanistan prematurely, and we'll be back over there fighting again within 5 years.
        longducdong
        • 4 Years Ago
        @black republican
        I find it even funnier that dumocraps that protested Bush and the war, voted in Obama who is, guess what? Continuing the wars and even adding others to the pile. These same people also protest wars because they kill innocent people, yet also support abortion. Hypocritical idiots.
          Hazdaz
          • 4 Years Ago
          @longducdong
          Riiiight because you can simply STOP a war as if it was a light-switch. Yeah, great thinking there, genius. Combat operations in Iraq ended last year and we seem to be winding down operations in Afghanistan as well. The point was not to get into that goddamn mess to begin with. Instead now we are literally TRILLIONS in the whole for Bush's lies with nothing to show for it. (and he was too much of a coward, like the rest of the traitorous GOP, to even put those war cost even on the books).
        dukeisduke
        • 4 Years Ago
        @black republican
        Mysteriously, the antiwar protests dried up once Obama was elected. Why is that? Where are the giant papier mache' heads of Obama and Biden? And no, I don't watch Fox News, either.
      Mihir StarBurnout
      • 4 Years Ago
      someone tell Chrysler, April's fool is on April 1st
      • 4 Years Ago
      [blocked]
        CEC
        • 4 Years Ago
        Chrysler's loans have a much higher interest rate then the Treasury bonds that the Chinese are buying. Chrysler's loans didn't cost the taxpayer anything.
      dtanker607
      • 4 Years Ago
      Well,I guess repaying the loan is great new. Now can they EVER, EVER build anything but carp.
        FunT
        • 4 Years Ago
        @dtanker607
        I'm hearing rumors that they have a new trout and sturgeon model in the works, however a good salmon and yellow fin tuna would be a great addition as well.
          Rotation
          • 4 Years Ago
          @FunT
          That's just like the Big 3, continue to build oversized, guzzlers when what the situation really demands is more efficient pike models. I know if they brought over one of the European minnow models I'd buy one in an instant and I doubt I'm alone in this.
      scott
      • 4 Years Ago
      Marchionne always makes the weirdest, most awkward faces/poses. But seriously, somehow I doubt it's feasible to pay these loans off by June. That's basically a month away.
        evans1396
        • 4 Years Ago
        @scott
        I am sure that they have been working on this deal for months behind the scenes. It is only now being announced since they are so close to finalizing the deal. I am betting that Marchionne will be able to pull this off. By the end of the year, and following the release of a car here in the states averaging more than 40mpg, they will claim the remaining 5% and have a total ownership in Chrysler of 51%. I find it amazing that Marchionne and Fiat have done more for Chrysler in the past year and a half than Daimler and Cerberus did in the entire time they each controlled the company.
      Logan Wild
      • 4 Years Ago
      How about paying your taxes
      72CJ5driver
      • 4 Years Ago
      I like the picture only because Obama looks like he's about to head-but Marchionne.
      avinash Machado
      • 4 Years Ago
      Kudos.
      avinash Machado
      • 4 Years Ago
      Kudos.
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