Summary
Ford Motor Company (F) announced on February 10, 2011, its intention to redeem all outstanding 6.50% Junior Subordinated Convertible Debentures due January 15, 2032, held by its subsidiary, Ford Motor Company Capital Trust II. This action will trigger a mandatory redemption of the associated 6.50% Cumulative Convertible Trust Preferred Securities (FPRS). The redemption is scheduled for March 15, 2011. Investors holding the Trust Preferred Securities will receive $50.33 per security, plus accrued and unpaid distributions of $0.5416667. The New York Stock Exchange has set March 8, 2011, as the last trading day for these securities to allow for trade settlement before conversion rights expire on March 14, 2011.
Key Highlights
- 1Ford Motor Company is redeeming its 6.50% Junior Subordinated Convertible Debentures due 2032.
- 2This redemption will lead to the mandatory redemption of Ford Motor Company Capital Trust II's 6.50% Cumulative Convertible Trust Preferred Securities (FPRS).
- 3The redemption date is set for March 15, 2011.
- 4Holders of the Trust Preferred Securities will receive $50.33 per security plus accrued distributions ($0.5416667).
- 5The last day of trading for the Trust Preferred Securities on the NYSE will be March 8, 2011.
- 6Holders' conversion rights for the Trust Preferred Securities will terminate on March 14, 2011.
Frequently Asked Questions
Ford Motor Company is redeeming its 6.50% Junior Subordinated Convertible Debentures due 2032. This action is being taken because these debentures are held by a subsidiary trust (Ford Motor Company Capital Trust II), and their redemption necessitates the redemption of the Trust Preferred Securities issued by that trust.
The redemption price is $50.33 per Trust Preferred Security, in addition to any accrued and unpaid distributions, which amount to $0.5416667 per Trust Preferred Security.
The last day to trade the Trust Preferred Securities on the New York Stock Exchange is March 8, 2011. Holders' rights to convert these securities will terminate at 5:00 p.m. New York City time on March 14, 2011, the day before the redemption date.
You will need to present and surrender your Trust Preferred Securities to the redemption and paying agent on or after the redemption date (March 15, 2011) to receive the redemption payment.