Business
Ford reduces debt
Ford reduces debt.
About this update from Fdm Group (holdings) Plc
[{"type":"text","content":"\n RNS Number : 5426O Ford Motor Co 30 June 2010 \n \n\n\n\n\n\nContact:\n\n\nMedia:\n\n\nInvestor Relations:\n\n\nFixed Income\n\n\n\n\n \n\n\nMark Truby\n\n\nLarry Heck\n\n\nShawn Ryan\n\n\n\n\n \n\n\n313.323.0539\n\n\n313.594.0613\n\n\n313.621.0881\n\n\n\n\n \n\n\[email protected]\n\n\[email protected]\n\n\[email protected]\n\n\n\n\n\n\nFORD TAKES ACTION TO FURTHER STRENGTHEN BALANCE SHEET BY REDUCING DEBT BY $4 BILLION\n \n· Ford to pay $3.8 billion in cash to the UAW Retiree Medical Benefits Trust by making scheduled debt payments due on Notes A and B held by the trust and paying the entire remaining balance of Note A ahead of schedule\n· Company to pay $255 million of previously deferred quarterly distributions on 6.50% Cumulative Trust Preferred Securities of Ford Motor Company Capital Trust II; quarterly distribution payments will resume starting with the payment due on July 15, 2010\n· Ford obtains more flexibility over a three-year period to pre-pay all or a portion of the remaining $3.6 billion outstanding principal amount of Note B\n· These actions, combined with an April payment of $3 billion on its 2013 revolving credit facility, reduced Ford's debt by more than $7 billion during the second quarter; the total debt reduction will save Ford more than $470 million in annual interest expense\n \nDEARBORN, Mich., June 30, 2010 - Ford Motor Company (NYSE: F) today is reducing its debt by more than $4 billion - primarily by retiring debt owed to the UAW Retiree Medical Benefits Trust ahead of schedule. The company said it is taking the action to further strengthen its balance sheet as it gains momentum on its One Ford plan and remains on track to deliver solid profits and positive Automotive operating-related cash flow this year.\n \nFord is making scheduled payments in cash totaling about $860 million on Notes A and B held by the UAW Retiree Medical Benefits Trust - including about $250 million due under Note A, and $610 million due under Note B. Ford had the option to pay Note B with cash or Ford stock but agreed to pay with cash. In addition, Ford and its subsidiary, Ford Motor Credit Company, are paying a combined $2.9 billion to retire the remain...