Friday, December 12, 2014

Fiat Chrysler puts in $ 11 – BBC

Fiat Chrysler puts in $ 11 – BBC



Milan , December 11, 2014 – 10:40

     
     
 

Rain of sales, title almost immediately suspended for excessive downward (- 7.3%), which also quotes the readmission tend to align with the price set for the placement of a hundred million new titles and, above all, to the bottom of the range established for the mandatory conversion of the two-year loan from 2.875 billion dollars. Reacts so the stock market, after opening, the announcement of the terms of the double ‘American operation “of Chrysler Fiat Automobiles. Around noon Fca gives -6.3% to 9.81%. In red even Exor who loses 2.17% to € 33.84.

The convertible loan at 7.875% to 2.87 billion

The statement of the group, initially expected for the late evening of Wednesday (shortly after the close of Wall Street), arrives at dawn actually Italian. The hundred million shares, 13 of which reserved for banks that follow the placement, will be offered at a price of $ 11: total receipts for Fca be worth, at current exchange rates, just over 800 million. Converting the bonds, maturing December 15, 2016 (but with the possibility of early conversion), subscribers will pay an annual interest rate equal to 7.875% and provides a conversion rate that ranges from a minimum of 7.7369 to a maximum of 9.0909 shares per bond. The total amount of 2.875 billion dollars is in part already placed: Exor, majority shareholder of Fca with 30%, confirmed the subscription for a total of 886 million dollars, which will allow the holding of not dilute their package; the placing banks will, as in the case of the issue share, an option on a total sum of 375 mi llion dollars.

The exchange with the Ferrari shares (which looks abroad)

Both actions both bonds will give the right to get free Ferrari shares, which will be spun off and then quoted on Wall Street by September 2015. On the table of the Maranello company, headed by Sergio Marchionne and destined to pass by Fca to Exor, remains the possibility of transfer of the headquarters legal and / or tax, respectively, in Amsterdam and London (according to the scheme already used by CNH and the same Fca). The decision will be taken at the beginning of 2015, but the mere possibility of a move abroad the symbol par excellence of Made in Italy has already sparked controversy more vibrant than it happened to Fca.

“At least a billion from Cavallino on Wall Street”

Ferrari is, in any case, a key piece of the entire American operation and sources of financing of investments coming Fiat Chrysler. The current parent company, before the separation, Maranello will pay a maxi-coupon of 2.25 billion euro. Another billion (“At least”) vertices Fca await the listing of 10% on Wall Street. And there is the effect exerted by the combination hitch-free actions and converting Fiat Chrysler. Much of the big gains of recent weeks are targati “Red.” The effect was, however, stopped in recent sessions, with markdowns amplified yesterday (and which is investigating the Consob): the title, though still above the $ 11 the imminent placement, tends to align both the latter is to These conversions of bonds, including in a range between 11 and $ 12.92 (EUR 8.83 to 10.38).

December 11, 2014 | 10:40

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