Chrysler 2007 Annual Report Download - page 174

173Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
The bonds issued by the Group are governed by different terms and conditions according to their type as follows:
■ Global Medium Term Note (GMTN Program) : a maximum of 15 billion euros may be used under this Program, of which notes of
approximately 5 billion euros have been issued to date; the Program is guaranteed by Fiat S.p.A. The issuer taking part in the
program is, among others, Fiat Finance & Trade Ltd. S.A. for an amount outstanding of 3,992 million euros. As a part of this
Program, a new bond having a nominal value of 1 billion euros has been issued by Fiat Finance North America Inc. at a price of
99.232 bearing fixed interest at 5.625% and repayable on June 12, 2017.
■ Other bonds , these refer to the following issues:
– Fiat Finance & Trade Ltd. S.A. bond having a nominal value of 1 billion euros, issued at par, bearing fixed interest at 6.625% and
repayable on February 15, 2013.
– Case New Holland Inc. (“CNH Inc.”) bond having for an amount of 500 million of US dollars (equivalent to 339 million euros),
issued in 2006 at par, bearing annual interest at 7.125% and repayable in 2014.
– Bond issued by Case New Holland Inc. in 2004 (bearing coupon interest at 6.00% and repayable on June 1, 2009 for an amount of
500 million U.S. dollars, equivalent to 339 million euros).
– Bonds issued by CNH America LLC for a total amount outstanding of 254 million US dollars, equivalent to 173 million euros.
In 2007, the increase in the item Bonds arising from the new issues made by Fiat Finance North America Inc. has been partially
offset by the early redemption, in August 2007, of a Case New Holland Inc. bond originally due in August 2011 and amounting to
1,050 million US dollars, equivalent to 767 million euros; by the repayment at due date of a CNH Capital America Inc. bond
amounting to 127 million US dollars, equivalent to 92 million euros; by the repayment at the due date of the first fixed amount
annual instalment due in connection with the “Fiat Step-up amortizing” bond issued under the Global Medium Term Notes
Program for 123 million euros; by the repayment at due date of other bonds by Fiat Finance & Trade Ltd. S.A. amounting to 58
million euros; by the repayment at the due date of the residual debt of 13 million euros arising from the 5 year bond convertible
into General Motors Corporation common stock (the “Exchangeable bond”); by the effect of exchange rate differences amounting
to 137 million euros; and by the effect of changes arising from hedging and measurement at amortised cost, amounting to 41
million euros.
The unaudited prospectuses and offering circulars, or their abstracts, relating to these principal bond issues are available on the
Group’s website at www.fiatgroup.com under “Shareholders and Investors – Financial Publications”.
The majority of the bonds issued by the Group contain commitments (“covenants”) by the issuer and in some cases by Fiat
S.p.A. as the guarantor, that are common in international practice for bond issues of this type, by issuers in the same industrial
segment as that in which the Group operates. In particular, these covenants may include (i) a negative pledge clause which, in
certain circumstances, requires that the benefit of any real guarantees given as collateral on the assets of the issuer and/or Fiat
and/or certain significant subsidiaries, should be extended to these bonds to the same degree, (ii) a
pari passu clause, on the
basis of which obligations cannot be undertaken which are senior to the bonds issued, (iii) an obligation to provide periodic
disclosure, (iv) for certain of the bond issues cross-default clauses, whereby the bonds become immediately due and payable
when certain defaults arise in respect of other financial instruments issued by the Group and (v) other clauses generally present
in issues of this type.