Summary
Ford Motor Company (F) filed an 8-K on February 3, 2009, reporting significant activity related to its financing. Amidst concerns about capital market instability and the global economy, Ford drew down the majority of its secured revolving credit facility. Specifically, the company notified lenders on January 29, 2009, of its intent to borrow the full unused amount of $10.9 billion under its $11.5 billion facility. On February 3, 2009, Ford received $10.1 billion from this facility. The remaining $890 million was not advanced due to Lehman Commercial Paper Inc.'s bankruptcy filing. This new $10.1 billion revolving loan carries an interest rate of LIBOR plus 2.25% and matures on December 15, 2011. The company also referenced a news release concerning January 2009 U.S. retail sales, indicating a need to communicate sales performance to investors.
Key Highlights
- 1Ford drew $10.1 billion under its $11.5 billion secured revolving credit facility due to economic instability.
- 2The credit facility draw was initiated by a notice on January 29, 2009.
- 3The full unused amount of $10.9 billion was initially intended to be drawn.
- 4Lehman Commercial Paper Inc.'s bankruptcy prevented the advance of $890 million.
- 5The new revolving loan bears interest at LIBOR plus 2.25%.
- 6The loan matures on December 15, 2011.
- 7Ford also filed a news release regarding January 2009 U.S. retail sales.