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FIAT'S SPINOFF OF ITS CNH/CONSTRUCTION EQUIPMENT BUSINESSES ON TRACK
Jul. 20, 2010
Farm Equipment magazine reports:
Fiat SpA (F.MI) has agreed with eight banks to refinance EUR4 billion in loans, a measure that paves the way for the company's planned split into separate automobile and heavy-equipment companies, Il Sole 24 Ore reports, without citing sources.
The fund will partly roll over expiring debt but EUR2.4 billion of the fresh cash is structured as a bridge loan to be substituted by an eventual bond sold by Fiat Industrial, the paper said.
Analysts expect Fiat Industrial, comprising CNH Global NV /quotes/comstock/13*!cnh/quotes/nls/cnh (CNH 27.05, +0.29, +1.08%) and truckmaker Iveco, to have a higher rating than Fiat's low-margin and cash-intensive car business.
The refinancing loan is being provided in equal shares by Intesa Sanpaolo SpA (ISP.MI), Unicredit SpA (UCG.MI), Citigroup Inc. /quotes/comstock/13*!c/quotes/nls/c (C 4.03, +0.13, +3.33%) , BNP Paribas SA (BNP.FR), Societe Generale SA /quotes/comstock/11i!scgly (SCGLY 9.29, +0.10, +1.09%) , Credit Agricole SA (ACA.FR) unit Calyon, and Barclays PLC /quotes/comstock/13*!bcs/quotes/nls/bcs (BCS 17.36, +0.06, +0.36%) .
Fiat Chief Executive Sergio Marchionne will July 21 seek approval for the proposed split from the board, which meets on July 21 at Chrysler's U.S. headquarters, and shareholders also have to approve the decision. The company expects shares in both Fiat and Fiat Industrial to be trading before the end of the year, Il Sole 24 Ore reports.
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