The Chrysler Group plans to sell about $7 billion worth of new debt to repay loans it received from the American and Canadian governments as part of its reorganization, people briefed on the matter told DealBook on Friday.
By repaying the government loans, Chrysler will take a major step toward eventually holding an initial public offering, now expected either late this year or sometime next year.
Chrysler has hired several firms — Goldman Sachs, Morgan Stanley, Citigroup and Bank of America — to lead the sale of new loans and bonds, these people said. The banks are also putting together a revolving credit facility for Chrysler that the company can use for general business purposes.
The debt offering could take place as soon as May, these people said.