Chrysler 2013 Annual Report Download - page 210

209
Consolidated
Financial Statements
at 31 December 2013
Changes in bonds during 2013 are mainly due to:
the issue by Fiat Finance and Trade Ltd S.A. as part of the Global Medium Term Notes Programme of 6.625% notes at par having a principal
of €1,250 million and due March 2018;
the repayment on maturity of a bond having a nominal value of €1 billion issued by Fiat Finance and Trade Ltd S.A. in 2006;
the issue by Fiat Finance and Trade Ltd S.A. as part of the Global Medium Term Notes Programme of 6.75% notes at par having a principal
of €850 million and due October 2019;
the re-opening of the above €850 million 6.75% notes due October 2019, with the issue by Fiat Finance and Trade Ltd S.A. of a further €400
million of notes at 101.231% of par value and a yield to maturity of 6.50%, increasing the total principal amount of the bond to €1.25 billion;
the issue by Fiat Finance and Trade Ltd S.A. as part of the Global Medium Term Notes Programme of 4.00% notes at par having a principal
of CHF 450 million and due November 2017.
The bonds issued by Fiat and Chrysler are subject to different terms and conditions, which vary by issuer and, in some cases, by individual issuance.
The prospectuses and/or indentures relating to the principal bond issues are available on the Group’s website at www.fiatspa.com under “Investors
- Debt and Credit Ratings - Bonds” and at www.chryslergroupllc.com under “Investor Relations - SEC filings”. These documents are unaudited.
Following the repayment on 15 February 2013 of the bond issued by Fiat Finance and Trade Ltd. S.A. having a nominal value of €1 billion, bearing fixed
interest at 6.625%, all the bonds issued by the Fiat Group excluding Chrysler are currently governed by the terms and conditions of the Global Medium
Term Note Programme. A maximum of €15 billion may be issued under this Program, of which notes of approximately €11.6 billion have been issued
to 31 December 2013; the Program is guaranteed by Fiat S.p.A. The issuers taking part in the program include, amongst others, Fiat Finance and Trade
Ltd. S.A. for an amount outstanding of €10.6 billion and Fiat Finance North America Inc. with a bond having a nominal value of €1 billion.
The companies in the Fiat Group may from time to time buy back bonds on the market that have been issued by the Group, also for purposes
of their cancellation. Such buybacks, if made, depend upon market conditions, the financial situation of the Group and other factors which
could affect such decisions.
Chrysler may redeem, at any time, all or any portion of the Secured Senior Notes on not less than 30 and not more than 60 days’ prior notice
mailed to the holders of the Notes to be redeemed.
Prior to 15 June 2015, the 2019 Secured Senior Notes (“2019 Notes”) will be redeemable at a price equal to the principal amount of the
2019 Notes being redeemed, plus accrued and unpaid interest to the date of redemption and a “make−whole” premium calculated under
the indenture. At any time prior to 15 June 2014, Chrysler may also redeem up to 35% of the aggregate principal amount of the 2019 Notes,
at a redemption price equal to 108% of the principal amount of the 2019 Notes being redeemed, plus accrued and unpaid interest to the
date of redemption with the net cash proceeds from certain equity offerings. On and after 15 June 2015, the 2019 Notes are redeemable
at redemption prices specified in the indenture, plus accrued and unpaid interest to the date of redemption. The redemption price is initially
104% of the principal amount of the 2019 Notes being redeemed for the twelve months beginning 15 June 2015, decreasing to 102% for
the year beginning 15 June 2016 and to par on and after 15 June 2017.
Prior to 15 June 2016, the 2021 Secured Senior Notes (“2021 Notes”) will be redeemable at a price equal to the principal amount of the
2021 Notes being redeemed, plus accrued and unpaid interest to the date of redemption and a “make−whole” premium calculated under
the indenture. At any time prior to 15 June 2014, Chrysler may also redeem up to 35% of the aggregate principal amount of the 2021 Notes,
at a redemption price equal to 108.25% of the principal amount of the 2021 Notes being redeemed, plus accrued and unpaid interest to the
date of redemption with the net cash proceeds from certain equity offerings. On and after 15 June 2016, the 2021 Notes are redeemable
at redemption prices specified in the indenture, plus accrued and unpaid interest to the date of redemption. The redemption price is initially
104.125% of the principal amount of the 2021 Notes being redeemed for the twelve months beginning 15 June 2016, decreasing to
102.75% for the year beginning 15 June 2017, to 101.375% for the year beginning 15 June 2018 and to par on and after 15 June 2019.