Ferrari spin-off to reduce Fiat Chrysler debt by $894 million
FCA had already said in a separate filing with U.S. market regulator SEC earlier this month that it would receive 2.25 billion euros from Ferrari before it spins off the luxury sportscar unit from the group next year.
The company added on Wednesday that this payment and the removal of Ferrari's own debt of 133 million euros from the parent group's accounts would be offset by the loss of Ferrari's cash and receivables worth 1.67 billion euros.
FCA had net debt of 11.37 billion euros at end-September. The company added in the filing that the final impact on its debt could "differ materially" from the projected amount given potential changes to its own and Ferrari's debt at the time the spin-off occurs.
CEO Sergio Marchionne, who also serves as Ferrari chairman, said in October he would spin off the unit, sell a 10 percent stake via a public offering and distribute the rest of FCA's stake in the luxury sports car brand to its shareholders.
The spin-off is part of a bigger capital-raising plan that also includes a $2.5 billion mandatory convertible bond issue and a share sale to help cut debt and fund an ambitious business plan at the world's seventh-largest carmaker.
Marchionne said at the time that all the measures would inject 4 billion euros into the group.