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Ferrari borrows $2.6 billion to finance FCA spinoff

Ferrari announced Monday that it is borrowing about $2.6 billion to finance its spinoff from Fiat Chrysler Automobiles. Here's how it breaks down: Ferrari NV, the automaker's parent company based in the Netherlands, is taking out loans totaling 2.5 billion euros. That's equivalent to $2.64 billion at current exchange rates, and is divided between a term loan of $2.12 billion and a revolving credit facility of $529 million. The larger term loan "will be used to refinance indebtedness owing to Fiat Chrysler Automobiles," among other purposes. That ought to constitute the lion's share of the $2.38 billion which the Prancing Horse marque was, according to reports last year, slated to pay its current parent company in order to help FCA fund its ambitious growth plans. The separate line of credit is earmarked "to be used from time to time for general corporate and working capital purposes of the Ferrari group." Though Ferrari is not expected to take any other Fiat Chrysler properties with it, the "group" in this case would include its various financial services and distribution arms around the world that may have been separately incorporated. As noted in the statement below, the financial arrangement "represents a further step towards the separation of Ferrari from the FCA Group," following the separate stock issues from both companies as independent from each other. FERRARI N.V. SIGNS ˆ2.5 BILLION SYNDICATED CREDIT FACILITY Ferrari N.V. (NYSE: RACE) ("Ferrari") announced today that it has entered into a ˆ2.5 billion syndicated loan facility with a group of ten bookrunner banks. The facility comprises a bridge loan (the "Bridge Loan") and a term loan (the "Term Loan") of ˆ2 billion in aggregate and a revolving credit facility of ˆ500 million (the "RCF"). Proceeds of the Bridge Loan and Term Loan will be used to refinance indebtedness owing to Fiat Chrysler AutomobilesN.V. (NYSE: FCAU) ("FCA") and other indebtedness and for other general corporate purposes. Proceeds of the RCF may be used from time to time for general corporate and working capital purposes of the Ferrari group. The Bridge Loan has a 12 month maturity with an option for Ferrari to extend once for a six-month period. Ferrari intends to refinance the Bridge Loan prior to its maturity with longer term debt, including through capital markets or other financing transactions. The Term Loan, which comprises a majority of the total facility, and the RCF each have a maturity of five years.

Jay Leno's first time behind the wheel of the F40 is a magical moment

Jay Leno has a vast collection of cars and thanks to his connections gets to drive other incredible machines. But Leno has never experienced the raw, visceral feel of a Ferrari F40, until now. It doesn't take long for him to call it the best Ferrari he's ever driven and to claim that it's one of the most exciting cars to drive. The 1990 F40 belongs to Ferrari collector and jeweler David Lee. The vehicle, like the rest of Lee's collection, is immaculate. Lee isn't a stranger to Jay Leno's Garage and has let Leno experience his other Ferraris in the past. But the F40, in all of its turbocharged fury, is Leno's favorite Prancing Horse. As Leno claims, the F40 is a visceral, raw machine that caters to those that enjoy driving. There are no driver aids to help put down the 2.9-liter twin-turbocharged V8's power and nothing in the way to dilute the driving experience. Leno even goes as far as claiming the F40 is Italy's version of the AC Cobra, which is high praise from a person that isn't a huge fan of the brand. Leno clearly caught the Ferrari bug. All it took was a drive in the iconic F40. Related Video: Image Credit: Jay Leno's Garage / YouTube Celebrities Ferrari Coupe Lightweight Vehicles Performance Supercars Classics Videos Jay Lenos Garage ferrari f40

Race Recap: 2014 Malaysian F1 Grand Prix [spoilers]

The Malaysian Grand Prix is always one of the jokers on the Formula One calendar: you know it's going to rain during the weekend, but you don't know when. This year it began during qualifying, the dammed up clouds over the Sepang track dumping their reservoirs just before Q1 and causing a 50-minute delay.
The conditions helped Infiniti Red Bull Racing close the gap on Mercedes AMG Petronas and split the Silver Arrows cars, Sebastian Vettel lining up in second on the grid behind pole-sitter Lewis Hamilton, ahead of Nico Rosberg. Fernando Alonso recovered from a suspension-damaging incident with Toro Rosso driver Daniil Kyvat to take fourth, followed by the second Red Bull of Daniel Ricciardo in fifth, then the off-form Kimi Räikkönen in sixth in the second Ferrari, Nico Hülkenberg in the Force India, star rookie Kevin Magnussen in the first McLaren ahead of Jean-Eric Vergne in the Toro Rosso, and Jenson Button in the second McLaren finishing up the top ten.
After that, though, the clouds decided they were done with F1. Save a few drop at the final corners during the race, the track stayed completely dry. And except for the beginning and the end, for the most part, so was the race.