(Bloomberg) -- Chrysler increased the interest rates
on $12 billion of loans it is seeking to fund a buyout by
Cerberus Capital Management LP after investors balked at the
money-losing carmaker's original terms, lenders said.
The company raised the yield it is willing to pay on a $10
billion term loan for its auto unit to 3.75 percentage points
over the London interbank offered rate from 3.25 percentage
points it was seeking on June 28. Chrysler is offering Libor plus
at least 7 percentage points on a $2 billion second-lien loan,
compared with the 6 percentage points initially proposed, said
three investors, who declined to be named because the terms
aren't public.
Read more at Bloomberg Bonds News
on $12 billion of loans it is seeking to fund a buyout by
Cerberus Capital Management LP after investors balked at the
money-losing carmaker's original terms, lenders said.
The company raised the yield it is willing to pay on a $10
billion term loan for its auto unit to 3.75 percentage points
over the London interbank offered rate from 3.25 percentage
points it was seeking on June 28. Chrysler is offering Libor plus
at least 7 percentage points on a $2 billion second-lien loan,
compared with the 6 percentage points initially proposed, said
three investors, who declined to be named because the terms
aren't public.
Read more at Bloomberg Bonds News
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