by Calculated Risk on 7/17/2007 03:58:00 PM

From the WSJ: Banks May Sweeten Terms Of Loans for Chrysler Deal

Wall Street banks that are arranging financing for Cerberus Capital Management LP's acquisition of the Chrysler Group are looking to sweeten the terms on loans ...

... bankers marketed a $10 billion loan for Chrysler's auto business at 3.75 percentage points above the London Interbank Offered Rate, compared to the 3.25 percentage points discussed when the road show kicked off about three weeks ago, Standard & Poor's said.

And another $2 billion in financing for the auto company is now being marketed at seven percentage points above the London interbank offered rate, compared to the original six percentage points. The banks are also offering to sell those loans at less than 100 cents on the dollar in a bid to further entice investors to the deal.
...
Pricing for $8 billion in loans for Chrysler Financial is also expected to change...

J.P. Morgan Chase & Co., Bear Stearns Cos., Goldman Sachs Group Inc., Citigroup Inc. and Morgan Stanley have committed to raising money for the deal that will require Cerberus to raise about $62 billion in debt.