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From Bloomberg:
Fiat SpA (F) stands to earn three times as much from a Chrysler Group LLC dividend this year after the U.S. carmaker refinanced debt and changed the terms attached to the funding, people familiar with the matter said.
The new debt covenants place lower restrictions on the size of the dividend Fiat can collect from Chrysler, which the Italian company controls with a 58.5 percent stake, said the people, who asked not to be identified because the details have not been announced. Fiat for 2013 may collect $936 million as a result of the changes, up from a maximum of about $300 million under the old terms. Chrysler and Fiat declined to comment.
--snip--
Chrysler, based in Auburn Hills, Michigan, is targeting net income of $2.2 billion for this year. If the American manufacturer awards its maximum dividend, plus the $500 million, it would pay out $1.6 billion for 2013, one of the people said.
With its majority stake, Fiat could collect $936 million. The UAW trust would get the rest. Chrysler’s board would have to approve the dividend. The current debt has a covenant restricting Chrysler’s dividend to Turin-based Fiat and the UAW trust at $500 million.
Original article here:
http://www.businessweek.com/news/2013-06-21/fiat-said-able-to-triple-payout-from-chrysler-after-refinancing
Fiat SpA (F) stands to earn three times as much from a Chrysler Group LLC dividend this year after the U.S. carmaker refinanced debt and changed the terms attached to the funding, people familiar with the matter said.
The new debt covenants place lower restrictions on the size of the dividend Fiat can collect from Chrysler, which the Italian company controls with a 58.5 percent stake, said the people, who asked not to be identified because the details have not been announced. Fiat for 2013 may collect $936 million as a result of the changes, up from a maximum of about $300 million under the old terms. Chrysler and Fiat declined to comment.
--snip--
Chrysler, based in Auburn Hills, Michigan, is targeting net income of $2.2 billion for this year. If the American manufacturer awards its maximum dividend, plus the $500 million, it would pay out $1.6 billion for 2013, one of the people said.
With its majority stake, Fiat could collect $936 million. The UAW trust would get the rest. Chrysler’s board would have to approve the dividend. The current debt has a covenant restricting Chrysler’s dividend to Turin-based Fiat and the UAW trust at $500 million.
Original article here:
http://www.businessweek.com/news/2013-06-21/fiat-said-able-to-triple-payout-from-chrysler-after-refinancing
