The Italian-American automaker said Thursday the funds will be available for “general corporate purposes and for working capital ne.”
The credit facility, with two unnamed banks, is structured as a bridge facility, or short-term loan. Funds can be drawn in a single tranche, with an initial 12-month term which can be extended at the company’s option for an additional 6-month terms.
The new credit facility is in addition to Fiat Chrysler‘s existing credit facilities of about $8.5 billion, including bi-lateral credit lines worth $1.65 billion that the company said it has started to draw down.
Fiat Chrysler was impacted earlier than other automakers as COVID-19 spread globally from China. The company has many factories in Europe, particularly Italy, that had to temporarily shutter due to the pandemic.
Pressured by the United Auto Workers union last week, Fiat Chrysler as well as General Motors and Ford Motor also announced plans to shutter domestic plants in an attempt to curb the spread of the disease.