Summary
This 8-K filing from Ford Motor Company (F) on September 22, 2009, details the finalization of a material definitive agreement with the U.S. Department of Energy (DOE) for a significant term loan facility. The agreement, dated September 16, 2009, pertains to the Advanced Technology Vehicles Manufacturing Incentive Program (ATVM Program) and provides Ford with access to up to $5.937 billion in loans. These funds are designated to finance the costs associated with developing and manufacturing advanced technology vehicles and components in the United States, extending through mid-2012. The loan facility is structured as a 13-year multi-draw term loan, with initial draws expected by September 30, 2009. The interest rate is a blended rate based on Treasury yields, with an estimated initial rate of 3.22%. The loan matures in June 2022 and will be repaid in quarterly installments starting in September 2012. This significant financial arrangement underscores Ford's commitment to advanced vehicle technologies and its reliance on government support during a critical period.
Key Highlights
- 1Ford Motor Company finalized a loan arrangement with the U.S. Department of Energy (DOE) under the Advanced Technology Vehicles Manufacturing (ATVM) Incentive Program.
- 2The agreement provides access to a 13-year, multi-draw term loan facility of up to $5.937 billion.
- 3Loan proceeds will finance the costs of thirteen approved advanced technology vehicle programs through mid-2012.
- 4The facility allows for draws from September 16, 2009, through June 30, 2012, with maturity on June 15, 2022.
- 5Interest rates are blended based on Treasury yields, with an estimated initial rate of 3.22% per annum.
- 6The loans are secured by a first priority security interest in assets purchased with loan proceeds and a junior security interest in existing collateral.
- 7Certain Ford subsidiaries will guarantee the loan obligations.