Ford’s New Debt: Attractive, But There Are Alternatives
By Michael Terry – Seeking Alpha
August 2, 2012
Ford Motor Credit Company (F) (“FMCC”) was in the debt market again today, issuing $750 million in 3.5 year debt. The following are the issue details:
|Issuer||Ford Motor Credit Company LLC|
|Maturity||January 15, 2016|
|Interest Payment Dates||Semi-annually on each January 15 and July 15|
|Call||No par call prior to maturity|
- Limitation on Liens – Should FMCC pledge/lien any property in excess of $5MM (with certain exceptions), debt will be secured equally and ratably. For a financial entity, this does not mean much.
- Merger and Consolidation – No consolidation or merger of Ford Credit, and no sale or conveyance of its property as an entirety, or substantially as an entirety, may be made to another corporation, if, as a result any asset of Ford Credit would become subject to a Mortgage, unless the debt securities shall be equally and ratably secured. Again, no merger if assets become subject to a merger – no real bite for a credit company.
Ford Motor Credit Outstanding:
|3.875% due 1/15/2015||$1,250||$104.04||2.17%|
|5.625% due 9/15/2015||$1,000||$109.00||2.60%|
|2.50% due 1/15/2016||$750||$99.68||2.60%|
|6.625% due 8/15/2017||$1,250||$114.00||3.56%|
|5.0% due 5/15/2018||$1,950||$106.83||3.67%|
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