Chrysler to Fully Repay Government Loans This Quarter

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

Chrysler intends to use the net proceeds of the term loan and the securities 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. 

Bloomberg.com: Chrysler loans must be repaid before partner Fiat can increase its ownership to 51%

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