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Fiat Chrysler plans $3 billion bond offering to refinance debt

NEW YORK (Bloomberg) -- Fiat Chrysler Automobiles is planning to issue $3 billion in bonds that may be used to refinance debt at the former Chrysler Group.

The automaker may sell five- and eight-year notes, according to a person with knowledge of the transaction who asked not to be identified, citing lack of authorization to speak publicly.

Proceeds will be used for general corporate purposes, which may include the refinancing of notes of its unit FCA USA LLC, according to a company statement.

The proposed offering would be the company's second debt deal since CEO Sergio Marchionne engineered the October combination of Fiat with Chrysler. FCA raised $2.88 billion in six-year convertible debt securities in December, according to data compiled by Bloomberg.

The new notes may be rated B2 by Moody's Investors Service, five-levels below investment-grade, said the person. Standard & Poor's may grade them BB-, two levels higher than Moody's.

FCA also plans to raise $5 billion by spinning off a 10 percent stake in its Ferrari unit this year.

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