Tuesday, November 6, 2007

Banks to offer $10B in Chrysler debt

Report: Wall Street banks will to sell the debt after having postponed the sale in July because of instability in the credit markets.

NEW YORK (CNNMoney.com) -- Wall Street investment banks are planning to launch an offering of up to $10 billion in loans for Chrysler LLC's automotive business on Wednesday, according to a report published in the Wall Street Journal.

The loan offering is a sign of improvement in the corporate loan market, according to the Journal. The paper reported that the loans were part of the automaker's sale to private equity firm Cerberus Capital Management LP.

The offering constitutes a "second try" at a similar debt sale that was postponed in July amid credit market turmoil, according to the Journal.

At that time, the underwriters, which included J.P. Morgan Chase & Co (Charts, Fortune 500)., Citigroup Inc., (Charts, Fortune 500) Goldman Sachs Group Inc (Charts, Fortune 500)., Morgan Stanley (Charts, Fortune 500) and Bear Stearns & Co., (Charts, Fortune 500) were faced with weak investor demand for the loans and decided to postpone that sale, taking $10 billion of the loans onto their own books

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