Chrysler Expected to Pay Back Loans From the U.S. and Canada

“Chrysler Group LLC plans to repay U.S. and Canadian government loans on May 24, clearing the way for Fiat SpA (F)to increase its ownership in the U.S. automaker, two people familiar with the plans said.

Chrysler, based in Auburn Hills, Michigan, is marketing as much as $7.5 billion of debt to repay the U.S. Treasury and Canadian governments for money loaned as part of its 2009 bankruptcy restructuring.

The automaker said last month it would repay the loans, allowing Fiat to exercise an option to increase its stake to 46 percent from 30 percent. The new debt is expected to price today, and three business days are planned to complete details before the money changes hands, said one of the people, who asked not to be identified because the plans are private.”

Full article