Fiat Chrysler bolsters cash with $3.8 billion syndicated credit

MILAN (Reuters) – Fiat Chrysler said on Tuesday it had successfully completed the syndication of a 3.5 billion euro ($3.8 billion)credit facility which it had agreed last month with two banks.

With most of their plants around the world closed and global car demand badly hit by the coronavirus crisis, automakers such as Fiat Chrysler (FCA) are seeking to boost their cash reserves.

FCA said it had completed the syndication with a group of 13 banks, including the initial two underwriters.

The facility, with an initial 12-month term which can be extended for a further six months, adds to FCA’s existing credit facilities worth 7.7 billion euros, including lines for 1.5 billion euros which the automaker has started to draw down.

“The successful syndication confirms the strong support that FCA continues to enjoy from its relationship banks and supports FCA’s continued access to international capital markets in the current extraordinary circumstances,” FCA said in a statement.

(Reporting by Giulio Piovaccari; Editing by Alexander Smith)