Chrysler will take out bank loans and sell bonds to repay $7.5 billion in bailout money from the U.S. and Canadian governments, another sign that the company is recovering from its near collapse in 2009, The Associated Press reports.
Details about how much Chrysler will borrow from banks and the size of the bond sale are being worked out. Terms could be disclosed Monday.
Chrysler plans to repay the government loans this quarter through a refinancing package. The deal would allow Chrysler to return a big chunk of the money to the U.S. and Canada, which loaned the company the money two years ago to help it survive bankruptcy.
The refinancing also allows Chrysler to save millions of dollars in interest payments, and is a major step toward an initial public stock offering that could come late this year or in early 2012.
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