Ford (NYSE:F) is doubling its previous commitment of cash available to help retire loans and bonds in debt-equity swaps. Automotive News reports:
Ford Motor Co. will double the amount of cash it is offering to pay down senior secured term loan debt.
Lenders oversubscribed a $500 million cash tender offer by Ford Motor Credit Co. that ended March 19, so the company said it is increasing the amount of cash offered to $1 billion. That will enable Ford Credit to buy $2.2 billion worth of principal loan amounts from its lenders.
Like General Motors (NYSE:GM) and Chrysler, Ford has been trying to swap as much debt for shares of stock as they can to reduce the interest and principal payments they have to meet each month. The more debt they can swap for stock, the lower their cash outflow. This is crucial to surviving the current downturn.
Add New Comment
Thanks. Your comment is awaiting approval by a moderator.
Do you already have an account? Log in and claim this comment.
Add New Comment
Trackbacks
(Trackback URL)