Summary
On November 9, 2009, Ford Motor Company (Ford) announced the successful settlement of a public offering of $2.875 billion in aggregate principal amount of 4.25% Senior Convertible Notes due November 15, 2016. The offering, which included the full exercise of the underwriters' option to purchase additional notes, generated net proceeds of approximately $2.81 billion. These funds are earmarked for general corporate purposes, bolstering Ford's liquidity and financial flexibility during a critical period.
Key Highlights
- 1Ford successfully closed a public offering of $2.875 billion in Senior Convertible Notes.
- 2The offering generated net proceeds of approximately $2.81 billion.
- 3The notes carry a 4.25% annual interest rate, paid semi-annually.
- 4The notes are convertible into Ford Common Stock at a rate of 107.5269 shares per $1,000 principal amount.
- 5The conversion price is approximately $9.30 per share, representing a 25% premium over the November 3, 2009 closing price of $7.44.
- 6Proceeds are intended for general corporate purposes.
Frequently Asked Questions
This 8-K filing announces the settlement of Ford Motor Company's public offering of $2.875 billion in senior convertible notes, providing investors with details on the transaction and its financial implications.
Ford raised approximately $2.81 billion in net proceeds from the sale of these convertible notes.
The notes have a principal amount of $2.875 billion, a 4.25% annual interest rate, and mature on November 15, 2016. They are convertible into Ford Common Stock at a conversion price of approximately $9.30 per share, which was a 25% premium to the stock's closing price on November 3, 2009.
The net proceeds from the offering are intended for general corporate purposes, which typically include working capital, debt repayment, and other general business needs.