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Chrysler Group LLC has completed the United Auto Workers (UAW) buyout by repaying a $5 billion note the VEBA trust received in 2009 as part of the company’s bailout.
Chrysler raised the amount by selling secured senior debt securities ($3 billion) and senior secured term loan facilities ($2 billion). Additionally, the company borrowed an additional $250 million of term loans under its existing senior secured credit facilities maturing May 24, 2017.
The UAW trust no longer has a stake in the Chrysler Group, which is now fully owned by Fiat SpA. The Italian giant completed its acquisition of the Detroit-based manufacturer last month, buying the remaining 41.46 percent stake from the UAW.
“This transaction brings to a successful and earlier than anticipated conclusion the process that led the U.S. and Canadian governments, the UAW and the VEBA, together with Fiat, to take on the task of reestablishing Chrysler as a viable automotive enterprise,” said Chrysler Group CEO Sergio Marchionne.
The UAW trust no longer has a stake in the Chrysler Group, which is now fully owned by Fiat SpA. The Italian giant completed its acquisition of the Detroit-based manufacturer last month, buying the remaining 41.46 percent stake from the UAW.
“This transaction brings to a successful and earlier than anticipated conclusion the process that led the U.S. and Canadian governments, the UAW and the VEBA, together with Fiat, to take on the task of reestablishing Chrysler as a viable automotive enterprise,” said Chrysler Group CEO Sergio Marchionne.
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