Chrysler Financial Announces Full Repayment of Troubled Asset Relief Program (TARP) Loans
FARMINGTON HILLS, Mich., July 14 /PRNewswire/ — Chrysler Financial announced today it has repaid in full the $1.5 billion of Troubled Asset Relief Program (TARP) government loans. The Company originally secured TARP funding in January of this year to support Chrysler LLC in its efforts to remain viable. Chrysler Financial used the TARP loans to fund more than 85,000 consumer loans to support the sale of Chrysler, Jeep(R) and Dodge vehicles for Chrysler LLC.
The TARP funds were kept in a separate special purpose vehicle, and unlike other TARP recipients, those funds were never co-mingled with Chrysler Financial’s operating cash or balance sheet. This, and the quality of the assets in the portfolio, provided minimal risk exposure for the U.S. taxpayer during the six-month duration of the TARP loans.
Funds used to make the repayment of TARP were obtained through the completion of a AAA-rated automotive asset-backed securitization (ABS) through the Term Asset-Backed Securities Loan Facility (TALF). The original TARP loan contained provisions that increased Chrysler Financial’s costs over time, providing motivation for the Company to pay off the loan as quickly as possible. As a result of this transaction, Chrysler Financial will have no further TARP loans outstanding.
About Chrysler Financial
Chrysler Financial offers automotive financial products and services to both dealers and consumers of Chrysler, Jeep(R) and Dodge vehicles in the U.S., Canada, Mexico and Venezuela. In addition, it offers vehicle retail financing to more than 3,000 Chrysler, Jeep and Dodge dealers. Currently, nearly two million drivers in the United States enjoy the benefits of financing with Chrysler Financial. Chrysler Financial has a total workforce of more than 3,900 and supports a global portfolio of nearly $45 billion. For more information, visit corp.chryslerfinancial.com.
SOURCE Chrysler Financial