Business
Plans for Debt Financing
Plans for Debt Financing.
About this update from Fdm Group (holdings) Plc
[{"type":"text","content":"\n Ford Motor Co\n27 November 2006\n\nNEWS\n\nContact: \n\nMedia: Equity Investment Fixed Income Shareholder Inquiries:\nBecky Sanch Community: Investment Community: 1.800.555.5259 or\n1.313.594.4410 Raj Modi Rob Moeller 1.313.845.8540\[email protected] 1.313.323.8221 1.313.621.0881 [email protected]\n [email protected] [email protected]\n\n\nFOR IMMEDIATE RELEASE\n\nFORD ANNOUNCES PLANS FOR DEBT FINANCING\n\nDEARBORN, Mich., Nov. 27 - Ford Motor Company (NYSE: F) today announced that it \nplans to obtain financing totaling approximately $18 billion in order to address \nnear- and medium-term negative operating-related cash flow, to fund its \nrestructuring, and to provide added liquidity to protect against a recession or \nother unanticipated events.\n\nThe financing transactions consist of:\n\no new five-year senior secured revolving credit facility of approximately \n $8 billion that is intended to replace Ford's existing unsecured credit \n facilities of $6.3 billion;\n\no senior secured term loan of approximately $7 billion; and\n\no unsecured capital market transactions of approximately $3 billion, which \n may include unsecured notes convertible into Ford common stock.\n\nThe size of the individual components of the financing may vary depending on \nmarket conditions.\n\nBorrowings under the senior secured revolving and term loan credit facilities \nwill be secured on an equal basis by first-priority liens on principal domestic \nmanufacturing facilities (subject to public debt indenture limitations) and \nsubstantially all of the Company's other domestic automotive assets, certain \nintellectual property, certain real property, all or a portion of the stock of \ncertain subsidiaries (including Ford Motor Credit Company and Volvo), certain \nintercompany payables and notes, and up to $4 billion of domestic cash without \nrestriction on its use.\n\nThe arrangers for the senior secured credit facilities are Citigroup Corporate \nand Investment Banking, Goldman Sachs Credit Partners L.P., and J.P. Morgan \nSecurities Inc.\n\nFord expects these transactions to close prior to December 31, 2006. \n \nUpon completion of the transactions, Ford expects to have Automotive liquidity \nof approximately $38 billion at year end 2006, consisting of gross cash (i.e., \ncash, cash equivalents, loaned and marketable securities and short-term ...