AUBURN HILLS, Mich. -- Chrysler Group LLC has announced the pricing of its previously announced offering of new secured senior debt securities and credit facilities.

The notes will be issued in two tranches: $1.5 billion principal amount of 8 percent Secured Senior Notes due 2019 and $1.7 billion principal amount of 8-1/4 percent Secured Senior Notes due 2021. Chrysler Group will also enter into a new senior secured credit facility including a $3 billion term loan facility and a $1.3 billion undrawn revolving credit facility permitting Chrysler Group to borrow funds at 4.75 percent over LIBOR, subject to a LIBOR floor of 1.25 percent on the term loan facility.

Chrysler Group intends to use the net proceeds of the notes offering, together with proceeds from the term loan facility and proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The notes offering, the senior secured credit facility and the Fiat equity investment are expected to close concurrently on May 24.

Chrysler Group placed the notes in a private placement under Rule 144A and Regulation S under the Securities Act of 1933. The notes have not been registered.