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The Fiat Group
yesterday launched its delayed 10-year Eurobond which is
set to raise 10 billion euros, with the offering immediately
oversubscribed. Initially planned for earlier this year the
offering was pulled due to unfavourable market conditions;
however Fiat CEO Sergio Marchionne believes the timing is
now right and this was confirmed by the financial markets'
response.
"Fiat announced
today that it intends to offer, subject to market
conditions, a benchmark 10 year Eurobond," read a statement
issued in Turin yesterday morning. "The final terms of the
offering will be determined on the basis of market
conditions at the time of pricing. The notes are to be
issued by Fiat Finance North America, Inc., a wholly-owned
subsidiary of Fiat S.p.A., under the Global Medium Term Note
Programme updated on April 23, 2007 and will be guaranteed
by Fiat S.p.A. Fiat expects to make an application for the
notes to be admitted to the Official List of the Irish Stock
Exchange and traded on its regulated market," it added.
Later on Tuesday afternoon the Fiat Group issued a second
statement to the markets. "Following Fiat’s announcement
earlier today of its launch of a ten year Eurobond," it
read.
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Initially planned for earlier this year the offering
was pulled due to unfavourable market conditions;
however Fiat CEO Sergio Marchionne believes the
timing is now right and this was confirmed by the
financial markets' response. |
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The Fiat Group yesterday relaunched its delayed
10-year Eurobond which is set to raise 10 billion
euros, with the offering immediately oversubscribed. |
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"Fiat confirms that the offering will be of 1,000 million
euros in principal amount of 5.625 percent Senior Notes with
a maturity of June 2017, with an issue price of 99.232
percent. It is currently expected that the offering will
close on 12 June 2007. The notes will be issued by Fiat
Finance North America Inc., a wholly-owned subsidiary of
Fiat S.p.A., under the €15 billion Global Medium Term Note
Programme and will be guaranteed by Fiat S.p.A. The offering
was significantly over-subscribed," it concluded.
Meanwhile late last week in another timely boost to the Fiat
Group's standing amongst international investors, the
ratings agency, Standard & Poor’s Ratings Services,
communicated that it had raised its rating on Fiat’s and
CNH’s long-term debt from “BB” to “BB+”. For both companies
the outlook is positive. There has also been growing media
speculation during the last week that the Fiat Group's
proposed New York stock market delisting plans are now
taking final shape.
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