Ford (F) Completes Debt Restructuring Initiatives

April 6, 2009 9:13 AM EDT

Ford Motor Company (NYSE: F) announced the successful completion of debt restructuring initiatives that will reduce Ford's Automotive debt by $9.9 billion from $25.8 billion at December 31, 2008, and lower Ford's annual cash interest expense by more than $500 million based on current interest rates.

• In total, Ford and Ford Credit will use $2.4 billion in cash plus 468 million shares of Ford common stock to reduce Ford's outstanding Automotive debt by $9.9 billion from $25.8 billion at Dec. 31, 2008. This will reduce Ford's annual cash interest expense by more than $500 million based on current interest rates
  
• This successful debt restructuring, together with previously announced agreements with the United Auto Workers, will substantially strengthen Ford's balance sheet
  
• Approximately $4.3 billion principal amount of Ford Motor Company's 4.25% Senior Convertible Notes due December 15, 2036 were validly tendered and accepted for purchase pursuant to Ford's conversion offer. Ford will use $344 million to pay a cash premium to convertible note holders who validly tendered
  
• Ford Motor Credit Company today separately announced the final results of its previously announced $1.3 billion cash tender offer for Ford's unsecured, non-convertible debt securities. Based on the tenders received, Ford Credit will use $1.1 billion in cash to purchase $3.4 billion principal amount of Ford's unsecured notes
  
• As previously announced, Ford Credit used $1 billion to purchase $2.2 billion principal amount of Ford's term loan debt at a price of 47 percent of par.

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