Key Developments For Ford Motor Company
Ford Motor Company (F) (NYSE Arca)
Ford Motor Company Completes Plan To Amend And Extend Existing Revolving Credit Facility
Ford Motor Company announced the completion of its previously announced plan to amend and extend the revolving credit facility under its secured credit agreement. Revolving lenders have agreed to extend the maturity of commitments totaling $7.2 billion under the facility to November 30, 2013, from December 15, 2011, and such lenders will convert $724 million of their existing revolving loans to a new term loan that matures on December 15, 2013. The total amount extended to 2013, including the new term loan, is $7.9 billion. Each lender that agreed to extend the maturity of its revolving commitment was permitted to reduce its revolving commitment by up to 25 percent at its election and to the extent its reduced revolving commitment exceeded certain specified levels, such excess will be converted into the new term loan under the secured credit agreement maturing on December 15, 2013. In addition, lenders that agreed to extend the maturity of their revolving commitments will receive a 1 percentage point increase in interest rate margins, an increase in quarterly fees and payment of an upfront fee.
Ford Motor Company Prices EUR500 Million 2014 Bond At 99.643-DJ
Dow Jones reported that FCE Bank PLC, a subsidiary of Ford Motor Company, has priced its EUR500 million, 2014-dated high-yield bond through joint-lead managers Barclays PLC, BNP Paribas SA, HSBC Holdings PLC and Royal Bank of Scotland Group PLC. Maturity date is January 17, 2014, coupon is 9.375%, reoffer price is 99.643 and payment date is November 17, 2009.
Ford Motor Company's FCE Bank Plans EUR500 Million 2014 Bond Offering-DJ
Dow Jones reported that FCE Bank PLC, a subsidiary of Ford Motor Company, is planning to sell a EUR500 million bond maturing January 17, 2014. Barclays PLC, BNP Paribas SA, HSBC Holdings PLC and Royal Bank of Scotland Group PLC have been hired as joint-lead managers for the transaction, which is expected to price later Tuesday.
Ford Motor Company Announces Pricing Results of Convertible Notes Offering
Ford Motor Company announced the pricing of its offering of senior convertible notes due November 15, 2016. Notes in the aggregate principal amount of $2.5 billion will be offered, an increase from the $2 billion previously announced. The notes will be senior unsecured obligations of Ford and will bear interest at a fixed rate of 4.25% per year. Ford has granted the underwriters an option to purchase an additional $375 million in aggregate principal amount of notes. The notes will be convertible, under certain circumstances, into shares of Ford common stock, cash or a combination thereof, at Ford's election. The initial conversion rate is 107.5269 shares of Ford common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $9.30 per share. The conversion rate and the conversion price are subject to adjustment upon the occurrence of certain events. Barclays Capital, BofA Merrill Lynch, Citi, Deutsche Bank Securities, Goldman Sachs & Co., J.P. Morgan, Morgan Stanley and RBS are acting as joint book-running managers of the notes offering. Net proceeds to Ford from the senior convertible notes offering are expected to be used for general corporate purposes.
UAW Rejects New Concessions To Ford Motor Company; No New Talks-Reuters
Reuters reported that the United Auto Workers union overwhelmingly rejected a proposed cost-cutting deal with Ford Motor Company, delivering a setback for the automaker as it seeks to bring down labor costs in line with U.S. rivals. The UAW said that 70% of production workers and 75% of skilled trade workers voted to reject a proposed agreement the union leadership and Ford Motor Company negotiated in October to change the 2007 four-year contract. The deal would have brought Ford Motor Company labor costs in line with General Motors Co and Chrysler Group LLC, both of which won additional concessions as part of their government-financed bankruptcies. UAW President said in a statement the union's past concessions have positioned Ford to be a strong competitor in a tough market and its surprise quarterly net profit announced early on Monday provided further evidence of the contributions the workers have made. The UAW represents about 41,000 U.S. factory workers at Ford Motor Company. The current contract expires in 2011.
