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Fiat Chrysler now has access to $2.8 billion from its U.S. subsidiary

Staff writer |
Fiat Chrysler Automobiles (FCA) said it has eliminated covenants linked to term loans of its U.S. unit, FCA US, thus gaining full access to the subsidiary's cash.

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After completing a buyout of its U.S. unit in 2014 and creating Fiat Chrysler Automobiles, the carmaker has been seeking to restructure Chrysler's finances to be able to fully access the division's cash, that was limited by a cap on dividends and debt covenants.

Fiat Chrysler Automobiles said its FCA US entered into amendments to its term loans maturing in 2017 and in 2018.

"The amendments represent the final step toward allowing the free flow of capital among members of the FCA Group, as previously announced, and enabling access to the second 2.5 billion euros ($2.8 billion) tranche of Fiat Chrysler Automobiles' 5 billion euros syndicated revolving credit facility," the company said in a press release.

It also said that FCA US LLC made a $2 billion prepayment applied to the term loans, leaving an aggregate principal balance of the term loans of about $2.8 billion.

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