Summary
Ford Motor Company has issued a notification regarding its 4.25% Senior Convertible Notes due 2036. Holders of the remaining principal amount of $818,000 have the option to require Ford to repurchase these notes on December 20, 2016. This repurchase option is a standard feature for this debt instrument, which was originally issued in 2006. Ford had previously terminated conversion rights for these notes in 2014, meaning holders can only elect to sell them back to the company at par value plus accrued interest.
Key Highlights
- 1Ford Motor Company is offering holders of its 4.25% Senior Convertible Notes due 2036 the option to repurchase the notes.
- 2The repurchase date is December 20, 2016.
- 3The principal amount of notes currently outstanding is $818,000.
- 4The repurchase price will be 100% of the principal amount plus accrued and unpaid interest.
- 5Ford previously terminated the conversion rights for these notes in January 2014.
- 6Holders must provide notice of their intent to repurchase by December 13, 2016, through DTC procedures.
- 7The Bank of New York Mellon is acting as the trustee and paying agent for the repurchase.