Chrysler Group announced that it reduced the interest rate for its $2.9 billion term loan and its un-drawn $1.3 billion revolving credit facility. In addition, certain loan covenants have been amended to be in harmony with those in the company’s bond agreement.

According to a related 8K filing, Citibank served as administrative and collateral agent in the refinancing.

Under current market conditions, this action reduces the annual interest cost for the term loan by approximately $50 million. This annual savings is partly offset by a one-time call premium of $29.5 million paid to investors. The revolving credit facility maintains a maturity date of May 24, 2016. The term loan maintains a maturity date of May 24, 2017.