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.