Double placement of shares and bonds Fiat Chrysler Automobiles (FCA) on Wall Street. The automotive group yesterday filed the two prospectuses with the Sec. Everything is ready for Sergio Marchionne's road show, which will meet the main investors next week.
The equity placement is supported by an offer of 100 million ordinary shares while the convertible loan maturing in 2016 amounts to the sum of 2,875 billion dollars.
The placement operation still lacks the detail of the price and, obviously, the definitive approval of the Sec. The major banks are engaged in the maxi-placement: for Italy, Unicredit Capital Markets, Mediobanca and Banca IMI participate.
Leading shareholder Exor announced its "intention to invest in an amount of convertible bonds that would protect against dilution of its 31% stake in ordinary shares." The bond, which will be converted into FCA ordinary shares at the 2016 expiry, will give rise to a coupon payable annually.
The resources that FCA will acquire from the double placement will serve to reduce the group's debt, which will immediately decrease as a result of the immediate collection of over one billion euros from the sale of shares and subsequently as a result of the convertible loan. Another 700 million euro blow to the FCA debt will also come from the spin-off of Ferrari scheduled for the third quarter of 2015.
