Ferrari gets 2.5b euros in funding

[MILAN] Luxury sports car maker Ferrari has signed contracts to raise 2.5 billion euros in debt which will use in part to refinance debt owed to Fiat Chrysler Automobiles as it moves towards separation from its parent company.

Ferrari said on Monday it had agreed with a pool of 10 banks a 12-month bridge loan and a five-year term loan worth in total 2 billion euros (S$2.98 billion).

It has agreed also a five-year revolving credit facility worth 500 million euros.

Ferrari said the maturity of the bridge loan could be extended by another six months. The company plans to refinance it ahead of maturity with longer term debt, either by tapping markets or through other financing transactions.

REUTERS