Chrysler to repay bailout with bank loans, bonds

Friday, April 22, 2011, Vol. 35, No. 16

DETROIT (AP) — Chrysler says it will take out bank loans and sell debt later this quarter to repay $6.6 billion in bailout loans from the U.S. and Canadian governments.

The company says details are still being worked out for the refinancing package. The terms could be disclosed on Monday when Chrysler releases its first-quarter earnings.

The move would bring the governments closer to getting much of their bailout money back. It also would save Chrysler millions of dollars in interest payments.

The refinancing is a major step toward Chrysler's initial public offering of stock. It also clears the way for Italy's Fiat to buy a controlling share of the U.S. automaker.

Chrysler still owes $5 billion to the U.S. government and $1.6 billion to Canada.