The logos of auto firms (LtoR) Abarth, Lancia, Fiat, Alfa Romeo and Jeep are pictured at the entrance to the Fiat Chrysler Cars (FCA) at the Fiat Mirafiori car or truck plant on May 27, 2019 in Turin, northern Italy.
Marco Bertorello | AFP | Getty Images
Fiat Chrysler has set up a $3.84 billion crisis credit facility as it makes an attempt to handle as a result of the coronavirus pandemic that has compelled it to shutter several of its operations globally.
The Italian-American automaker mentioned Thursday the cash will be offered for “basic company purposes and for doing work cash requirements.”
The credit facility, with two unnamed banking institutions, is structured as a bridge facility, or quick-term financial loan. Funds can be drawn in a one tranche, with an first 12-thirty day period phrase which can be extended at the firm’s solution for an additional 6-thirty day period terms.
Shares of Fiat Chrysler had been down by about 1.5% in pre-market buying and selling following the announcement. The inventory is down 49.4% so significantly this yr and 49.7% in excess of the earlier 12 months.
The new credit history facility is in addition to Fiat Chrysler’s current credit rating services of about $8.5 billion, such as bi-lateral credit history lines value $1.65 billion that the enterprise claimed it has started off to attract down.
Fiat Chrysler was impacted before than other automakers as COVID-19 unfold globally from China. The enterprise has several factories in Europe, specially Italy, that experienced to briefly shutter because of to the pandemic.
Pressured by the United Automobile Personnel union very last week, Fiat Chrysler as perfectly as General Motors and Ford Motor also declared designs to shutter domestic plants in an endeavor to suppress the unfold of the disorder.