Ferrari has announced it has entered into a EUR2.5bn syndicated loan facility with a group of 10 bookrunner banks as it moves to become independent from FCA.
The facility comprises both a bridge loan and a term loan of EUR2bn in aggregate and a revolving credit facility of EUR500m. Proceeds of the bridge and term loans will be used to refinance indebtedness owing to Fiat Chrysler Automobiles and other indebtedness and for other general corporate purposes. Proceeds of the revolving facility are for general corporate and working capital purposes of the Ferrari group.
The bridge loan is for a year with six-month extension option. Ferrari intends to refinance the bridge loan before maturity with longer term debt, including through capital markets or other financing transactions.
The term loan and the revolving facility are each for five years.
“The facility is limited in recourse to Ferrari and any Ferrari subsidiaries which borrow under the facility, and is without recourse to any other part of the FCA group,” Ferrari said in a statement.
“This transaction, which confirms key relationship banks’ strong support for Ferrari, represents a further step towards the separation of Ferrari from the FCA Group.”