Ford Motor Co
27 November 2006
NEWS
Contact:
Media: Equity Investment Fixed Income Shareholder Inquiries:
Becky Sanch Community: Investment Community: 1.800.555.5259 or
1.313.594.4410 Raj Modi Rob Moeller 1.313.845.8540
bsanch@ford.com 1.313.323.8221 1.313.621.0881 stockinf@ford.com
fordir@ford.com fixedinc@ford.com
FOR IMMEDIATE RELEASE
FORD ANNOUNCES PLANS FOR DEBT FINANCING
DEARBORN, Mich., Nov. 27 - Ford Motor Company (NYSE: F) today announced that it
plans to obtain financing totaling approximately $18 billion in order to address
near- and medium-term negative operating-related cash flow, to fund its
restructuring, and to provide added liquidity to protect against a recession or
other unanticipated events.
The financing transactions consist of:
o new five-year senior secured revolving credit facility of approximately
$8 billion that is intended to replace Ford's existing unsecured credit
facilities of $6.3 billion;
o senior secured term loan of approximately $7 billion; and
o unsecured capital market transactions of approximately $3 billion, which
may include unsecured notes convertible into Ford common stock.
The size of the individual components of the financing may vary depending on
market conditions.
Borrowings under the senior secured revolving and term loan credit facilities
will be secured on an equal basis by first-priority liens on principal domestic
manufacturing facilities (subject to public debt indenture limitations) and
substantially all of the Company's other domestic automotive assets, certain
intellectual property, certain real property, all or a portion of the stock of
certain subsidiaries (including Ford Motor Credit Company and Volvo), certain
intercompany payables and notes, and up to $4 billion of domestic cash without
restriction on its use.
The arrangers for the senior secured credit facilities are Citigroup Corporate
and Investment Banking, Goldman Sachs Credit Partners L.P., and J.P. Morgan
Securities Inc.
Ford expects these transactions to close prior to December 31, 2006.
Upon completion of the transactions, Ford expects to have Automotive liquidity
of approximately $38 billion at year end 2006, consisting of gross cash (i.e.,
cash, cash equivalents, loaned and marketable securities and short-term
Voluntary Employee Beneficiary Association assets) and available credit
facilities.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich.,
manufactures or distributes automobiles in 200 markets across six continents.
With about 300,000 employees and more than 100 plants worldwide, the company's
core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services
include Ford Motor Credit Company.
Forward-Looking Statements: Forward-looking statements herein regarding our
financial plans are based on expectations and assumptions by our management and
involve a number of risks, uncertainties, and other factors that could cause
actual results to differ materially from those stated, including, without
limitation, market conditions and the other factors described under the heading
'Management's Discussion and Analysis of Financial Condition and Result of
Operations - Risk Factors' in our most recent Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission.
This information is provided by RNS
The company news service from the London Stock Exchange