Ferrari secures $2.6 billion loan to finance its spinoff from Fiat Chrysler

Ferrari announced that it has entered into a €2.5 billion (or $2.6 billion) syndicated loan facility with a group of 10 banks that will together provide the Italian supercar maker its much needed capital necessary for its independence from Fiat Chrysler Automobiles (FCA). To break it down, Ferrari is getting a short-term "bridge loan" and a five-year "term loan" that are together worth 2 billion euros, along with a revolving line of credit of 500 million euros.

To bring you up to date, just in case you have missed it, this loan is another step on the path toward full separation of Ferrari and its longtime parent company FCA. The latter owned 90% of Ferrari for many years, but it sold 10% of its interest in an initial public offering in October. The remaining 10% of Ferrari is held by Piero Ferrari, the sole surviving offspring of founder Enzo Ferrari who is not selling. FCA's remaining shares of Ferrari will be transferred to FCA shareholders in a series of transactions over the next several months.

Ferrari didn't disclose the amounts of the individual loans, except to say that the term loan will be "a majority of the total facility." Some of the money from the bridge loan and term loan will be used to refinance debt that Ferrari currently owes to FCA, as well as for "general corporate purposes," Ferrari said in a statement.