Chrysler Group Prices Debt Offerings

Relevant Connections: Chrysler Buyer's Guide

AUBURN HILLS, MI--May 19, 2011: Chrysler Group LLC ("Chrysler Group") announced today the pricing of its previously announced offering of new secured senior debt securities (the "Notes") and credit facilities. The Notes will be issued in two tranches: $1.5 billion principal amount of 8% Secured Senior Notes due 2019 and $1.7 billion principal amount of 8-1/4% Secured Senior Notes due 2021. Chrysler Group will also enter into a new senior secured credit facility including a $3 billion term loan facility and a $1.3 billion undrawn revolving credit facility permitting Chrysler Group to borrow funds at 4.75% over LIBOR, subject to a LIBOR floor of 1.25% on the term loan facility.

Chrysler Group intends to use the net proceeds of the Notes offering, together with proceeds from the term loan facility and proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The Notes offering, the senior secured credit facility and the Fiat equity investment are expected to close concurrently on May 24, 2011.

Chrysler Group placed the Notes in a private placement under Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.