labels: passenger cars, daimlerchrysler, automotive
DaimlerChrysler, Cerberus complete Chrysler deal news
04 August 2007
Mumbai: DaimlerChrysler has completed the sale of its 80 per cent stake in its US arm, Chrysler, to a subsidiary of buyout group Cerberus Capital Management, the company.

The transaction has been delayed as bankers postponed a $12 billion loan syndication to finance the transaction in a tight market. DaimlerChrysler and Cerberus have thus been forced to help with the financing.

"DaimlerChrysler and Cerberus have agreed to support the financing of the majority takeover of Chrysler by Cerberus in light of highly volatile US loan markets," the carmaker said.

Cerberus would subscribe $2 billion of tier-2 debt for Chrysler''s automotive business, to be drawn within 12 months and priced at market conditions. DaimlerChrysler''s portion would be $1.5 billion, and it would have the right to sell the loan, which has a maturity of seven years, in the credit market, it added.

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DaimlerChrysler, Cerberus complete Chrysler deal