ITALY: Ferrari spin-off to cut Fiat debt by EUR750m

By Tony Lewis | 27 November 2014

The planned Ferrari spin-off will cut Fiat Chrysler Automobile's net industrial debt by some EUR750m (US$936m) according to a regulatory filing.

However, this payment and the removal of Ferrari's own debt of EUR133m from the parent group's accounts would be offset by the loss of Ferrari's cash and receivables worth EUR1.67bn.

FCA had net debts of EUR11.37bn at the end of September. The Ferrari spin-off is part of a major fund-raising exercise which includes a sale of shares and a US$2.5bn mandatory convertible bond.

Last month, FCA chief executive Sergio Marchionne, who is also chairman of Ferrari, said he would spin off the luxury sports car maker, sell a 10% stake through a public offering and distribute the rest of FCA's stake in Ferrari to its shareholders.