Nov 04, 2009 (M2 EQUITYBITES via COMTEX News Network) -- Automotive company Ford Motor Company (NYSE:F) priced its offering of
total principal amount of USD2.5bn senior convertible notes due 15
November 2016, an increase from the USD2bn announced previously, the
company stated on Tuesday.
The notes issued under an effective shelf registration statement will
be senior unsecured obligations of Ford, bearing a fixed 4.25% annual
interest rate.
Underwriters have an option to purchase an additional USD375m of notes,
the sale of which, subject to customary closing conditions will settle
on 9 November.
Proceeds will be used for general corporate purposes.
Under certain circumstances the notes will be convertible into shares
of Ford common stock, cash or a combination thereof, at Ford's
election. The initial rate is 107.5269 Ford common stock shares per
USD1,000 principal amount of notes, equal to an initial price of
approximately USD9.30 per share, both subject to adjustment based upon
certain events.
The joint acting book- running managers are Barclays Capital, BofA
Merrill Lynch, Citi, Deutsche Bank Securities, Goldman Sachs & Co, JP
Morgan, Morgan Stanley and RBS. BNP Paribas and HSBC will be included
in the underwriting syndicate for the offering as well.
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