Banks--- Betting on the recovery Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Banks--- Betting on the recovery

WFC 85.57

+0.6%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: tejek	3/23/2009 11:09:34 AM
	of 1428

Ford Credit's $500 Million Cash Tender Offer Over-Subscribed March 23, 2009: 09:51 AM ET DOW JONES NEWSWIRES Ford Motor Co.'s (F) finance arm said its $500 million cash tender offer to reduce the troubled auto maker's debt is over-subscribed, prompting Ford Credit to double the amount of cash it will use to buy additional term loan debt. Shares were up 5.5% at $2.90 in premarket trading. Ford Credit said it now plans to use $1 billion to purchase of $2.2 billion of term loan debt at 47% of par value. The offer is being conducted through a Dutch auction under which term-loan lenders were invited to submit bids to sell their term-loan debt. Meanwhile, nearly $3.4 billion in notes have been tendered in a separate, $1.3 billion cash tender offer to purchase Ford's unsecured, non-convertible debt securities. "We have taken significant steps towards reducing Ford's long-term debt and strengthening our balance sheet," said Ford Treasurer Neil Schloss. Ford Motor announced the plans early this month in an effort to retire up to $ 10.4 billion in debt through a combination of cash and stock largely financed by its lending arm. The moves were designed to tackle debt that stood at $25.8 billion at year-end, excluding payments due to a union-run health fund. The proposal will trim debt-servicing costs at a time when Ford's liquidity has deteriorated because of a continuing slowdown in global auto sales. -By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next