Chrysler repays $5 billion debt to VEBA trust

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MILAN (Reuters) -- Fiat Chrysler Automobiles group said today that its Chrysler unit closed a deal to raise debt worth $5 billion to repay early an existing bond issued to the U.S. healthcare trust VEBA.

The Italian automaker last month bought out minority Chrysler investor VEBA in a $4.35 billion deal to take total control of the U.S. carmaker.

Fiat reiterated that the refinancing would reduce debt-servicing costs by about $134 million between 2014 and 2016.

Chrysler raised $1.375 billion and $1.38 billion dollars through two senior secured bonds maturing in 2019 and 2021 respectively, tapping two previous bond issues, the group said.

Chrysler also increased an existing 2017 senior loan facility by $250 million and signed a new $1.75 billion senior loan that matures in 2018.

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