Chrysler Group To Repay All Bailout Loans

April 28, 2011
Filed under Trailer News

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Chrysler Group LLC announced today (April 28) 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, according to a news release.

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.

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