8-KMaterial AgreementsFinancial EventsExhibits & Filings

FORD MOTOR CO 8-K Report, Material Agreement (Apr 26, 2018)

Filed April 26, 2018For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company (F) announced on April 26, 2018, a material definitive agreement through the Fourteenth Amendment to its Credit Agreement. This amendment effectively extends the maturity dates of its revolving credit facilities by one year, providing greater financial flexibility. The total revolving commitments remain unchanged at $13.4 billion. Specifically, 75% of the commitments, previously maturing in April 2022, will now mature in April 2023. The remaining 25% of commitments, previously maturing in April 2020, are now extended to April 2021. The $3 billion allocation to Ford Motor Credit Company remains in place on an irrevocable and exclusive basis. This extension of credit facility maturities is a positive development for Ford, indicating continued access to liquidity and a strengthening of its financial position.

Key Highlights

  • 1Ford entered into the Fourteenth Amendment to its Credit Agreement on April 26, 2018.
  • 2The total revolving credit commitments remain at $13.4 billion.
  • 3Maturity dates for the revolving credit commitments have been extended by one year.
  • 475% of the commitments will now mature on April 30, 2023 (extended from April 30, 2022).
  • 525% of the commitments will now mature on April 30, 2021 (extended from April 30, 2020).
  • 6The allocation of $3 billion in commitments to Ford Motor Credit Company remains unchanged.
  • 7The amendment was filed as an exhibit to the 8-K report.

Frequently Asked Questions

The main purpose of the Fourteenth Amendment is to extend the maturity dates of Ford's revolving credit facilities by one year. This provides the company with extended access to liquidity and enhances its financial flexibility.

No, the total revolving commitments have remained unchanged at $13.4 billion following the Fourteenth Amendment.

The $3 billion allocation of commitments to Ford Motor Credit Company remains in place on an irrevocable and exclusive basis, unaffected by this amendment.

Extending credit maturity dates is important for investors as it reduces the immediate refinancing risk for the company. It indicates continued lender confidence and ensures that Ford has access to necessary funds for its operations and strategic initiatives over a longer period.