Business
Public Offering
Public Offering.
About this update from Fdm Group (holdings) Plc
[{"type":"text","content":"\n RNS Number : 1566S Ford Motor Co 13 May 2009 \n\n \n\n\n\n\n\n\nMedia:\n\n\nEquity Investment Community:\n\n\nFixed Income Investment Community:\n\n\nShareholder Inquiries:\n\n\n\n\nMark Truby\n\n\nLarry Heck\n\n\nDave Dickenson\n\n\n1.800.555.5259. or\n\n\n\n\n1.313.323.0539\n\n\n1.313.594.0613\n\n\n1.313.621.0881\n\n\n1.313.845.8540\n\n\n\n\[email protected]\n\n\[email protected]\n\n\nfixedinc:ford.com\n\n\[email protected]\n\n\n\n\nFORD RAISES $1.4 BILLION THROUGH COMMON STOCK OFFERING\nDEARBORN, Mich., May 12, 2009 -Ford Motor Company (NYSE: F) announced today that it has agreed to sell 300 million shares in a public offering of its common stock at a price to the public of $4.75 per share for total gross proceeds of approximately $1.4 billion.\n\nFord also granted to the underwriters a 30-day option to purchase up to 45 million additional shares of common stock to cover\nover-allotments.\n\nNet proceeds to Ford from the offering are expected to be used for general corporate purposes, including to fund with cash, instead of stock, a portion of the payments the company is required to make to the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust with the United Auto Workers.\n\n'We are pleased with this equity offering, which is another key step in our plan to transform Ford into an exciting, viable enterprise poised for profitable growth,' said Alan Mulally, Ford president and CEO. 'By issuing equity now and potentially funding a larger portion of our future VEBA obligations with cash, we are able to further improve our balance sheet and significantly reduce the potential dilutive impact of the VEBA obligations on existing shareholders.'\n\nUnder the previously announced agreement in principle with the UAW, Ford has the option to settle up to 50 percent of its obligations to the VEBA in shares of Ford common stock. That includes three separate payments of $610 million which are due in December 2009, June 2010 and June 2011. If Ford were to elect to pay those obligations by issuing stock to the VEBA, the number of shares Ford would have to issue would be calculated at the following share prices: December 2009: $2.00; June 2010: $2.10; and June 2011: $2.20. Accordingly, by accessing the equity market now and potentially using the proceeds to pay those VEBA obligations in cash, Ford is ...