Fiat announces terms of mandatory convertibles in Ferrari spinoff

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – Fiat Chrysler Automobiles NV has finished its determination of the number of Ferrari common shares that will be delivered to holders of its 7.875% mandatory convertible securities due 2016.

Fiat will deliver 0.77369 of a common share of Ferrari NV for each $100 in outstanding mandatory convertibles as a result of the upcoming Ferrari spinoff, according to a Monday news release.

Fiat said that, in accordance with the convertibles’ indenture, the company determined the daily volume weighted average price for the Fiat common shares during the measurement period exceeded $12.95 per share.

Fiat calculated the number Ferrari common shares it would deliver based on a ratio of one Ferrari share for every 10 underlying Fiat common shares.

Fiat will deliver a total of 22,243,588 Ferrari common shares for the $2,875,000,000 of outstanding mandatory convertibles.

A series of transactions that will effect the Ferrari spinoff are expected to be carried out between Dec. 31 and Jan. 3, and holders of Fiat shares and mandatory convertibles are expected to be able to trade in their shares in Ferrari beginning Jan. 4.

Fiat Chrysler is a London-based automaker.

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