November 28, 2006
Ford announces plans for debt financing
Dearborn, Michigan – The Ford Motor Company has announced that it plans to obtain financing totalling approximately $18 billion (all figures U.S.) in order to address near- and medium-term negative operating-related cash flow, to fund its restructuring, and to provide added liquidity as protection against a recession or other unanticipated events.
The financing transactions consist of a new five-year senior secured revolving credit facility of approximately $8 billion, intended to replace the company’s existing unsecured $6.3 billion credit facilities; a senior secured term loan of approximately $7 billion; and unsecured capital market transactions of approximately $3 billion.
Ford expects these transactions to close prior to December 31, 2006; upon completion, the company expects to have automotive liquidity of approximately $38 billion at year-end 2006, consisting of gross crash and available credit facilities.