Chrysler 2003 Annual Report Download - page 100

99 Fiat Group Consolidated Financial Statements at December 31, 2003
Notes to the Consolidated Financial Statements
The major bond issues outstanding at December 31, 2003 are the following:
Amount
outstanding
(in millions) Currency Face value Coupon Maturity in euros
Euro Medium Term Notes:
Fiat Fin. North America USD 69 5.020% Oct. 19, 2004 55
Fiat Fin. North America EUR 100 5.125% Feb. 21, 2005 70
Fiat Finance & Trade EUR 155 Indexed July 5, 2005 155
Fiat Finance & Trade EUR 130 Indexed July 5, 2005 130
Fiat Finance & Trade EUR 500 6.125% Aug, 1, 2005 500
Fiat Finance & Trade EUR 300 6.125% Aug, 1, 2005 300
Fiat Finance & Trade GBP 125 7.000% Oct. 19, 2005 170
Fiat Finance & Trade (1) EUR 1,700 5.750% May 25, 2006 1,700
Fiat Finance Canada EUR 100 5.800% July 21, 2006 81
Fiat Finance & Trade (1) EUR 500 5.500% Dec. 13, 2006 500
Fiat Finance & Trade (1) EUR 1,000 6.250% Feb. 24, 2010 1,000
Fiat Finance & Trade (1) EUR 1,300 6.750% May 25, 2011 1,300
Fiat Finance & Trade (1) EUR 617 (2) (2) 617
Others (3) 475
Total Euro Medium Term Notes 7,053
Convertible bonds:
Fiat Fin. Luxembourg (4) USD 2,229 3.250% July 9, 2004 1,765
Total Convertible bonds 1,765
Other bonds:
Fiat Finance & Trade (1) EUR 1,000 3.750% Mar. 31, 2004 936
Fiat Finance & Trade JPY 40,000 1.500% June 27, 2005 296
CASE LLC USD 243 7.250% Aug, 1, 2005 193
CASE CREDIT Corp. USD 127 6.750% Oct. 21, 2007 100
CNH Inc. USD 1,050 9.250% Aug. 1, 2011 831
CASE LLC USD 254 7.250% Jan. 15, 2016 201
Total Other bonds 2,557
Total bonds 11,375
(1) Bonds listed on the “Mercato Obbligazionario Telematico” of the Italian stock exchange (EuroMot). Furthermore, the majority of the bonds issued by the Fiat Group are also listed on
the Luxembourg stock exchange.
(2) “Fiat Step-Up Amortizing 2001-2011” bonds repayable at face value in five equal annual installments each for 20% of the total issued“ (617 million euros) due beginning from the sixth
year (November 7, 2007) by reducing the face value of each bond outstanding by one-fifth. The last installment will be repaid on November 7, 2011. The bonds pay coupon interest
equal to: 4.40% in the first year (Nov. 7, 2002), 4.60% in the second year (Nov. 7, 2003), 4.80% in the third year (Nov. 7, 2004), 5.00% in the fourth year (Nov. 7, 2005), 5.20% in the fifth
year (Nov. 7, 2006), 5.40% in the sixth year (Nov. 7, 2007), 5.90% in the seventh year (Nov. 7, 2008), 6.40% in the eighth year (Nov. 7, 2009), 6.90% in the ninth year (Nov. 7, 2010), 7.40%
in the tenth year (Nov. 7, 2011).
(3) Bonds with amounts outstanding equal to or less than the equivalent of 50 million euros.
(4) Bonds convertible into General Motors Corp. common stock.
The Fiat Group intends to repay the issued bonds in cash at maturity by utilizing available liquid resources. To this end, available
liquidity (Cash and Other securities in Current assets) at the end of 2003 totals 7 billion euros. The Fiat Group also has available
unused committed credit lines for more than 2 billion euros.
Moreover, the companies in the Fiat Group may from time to time buy back bonds on the market that were issued by the Group also
for purposes of their cancellation. Such buy-backs, if made, will depend upon market conditions, the financial situation of the Group
and other factors which could affect such decisions.
Mandatory Convertible facility
Medium and long-term financial payables also include the 3 billion euros Mandatory Convertible facility stipulated in execution of
the Framework Agreement, dated May 27, 2002, with Capitalia, Banca Intesa, SanPaolo IMI and Unicredito Italiano (Money Lending
Banks) for the purpose of providing the Fiat Group with the financial support it needs to implement its strategic and industrial plans.
The facility was secured on September 24, 2002 from a syndicate of banks, including the Money Lending Banks, in which BNL, Monte
dei Paschi di Siena, ABN Amro, BNP Paribas, Banco di Sicilia and Banca Toscana (hereinafter “the Banks”) also participated. The
main features of the Mandatory Convertible facility are listed in the following paragraphs.