Ford Motor Company (F)

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Ford to Get $18 Billion in Financing
Monday November 27, 8:53 am ET
Ford Plans to Get $18 Billion in Financing to Address Cash Flow Issues, Restructuring


DEARBORN, Mich. (AP) -- Ford Motor Co. said Monday it plans to get about $18 billion in financing in part to address near- and medium-term negative operating-related cash flow and fund its restructuring.
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The No. 2 U.S. automaker also said the financing will help protect against a recession or other unanticipated events.

Ford said a new five-year senior secured revolving credit facility of about $8 billion is intended to replace Ford's existing unsecured credit facilities of $6.3 billion. A senior secured term loan will total about $7 billion, and unsecured capital market transactions will total about $3 billion.

Following the transactions, Ford said its "automotive liquidity" will be about $38 billion at year's end. That includes cash, cash equivalents, loaned and marketable securities and available credit facilities.

Ford expects the transactions to close before Dec. 31. The senior secured credit facilities will be arranged by Citigroup Corporate and Investment Banking, Goldman Sachs Credit Partners L.P. and J.P. Morgan Securities Inc.

Dearborn-based Ford lost $7 billion during the first nine months of the year and has said it won't return to profitability until 2009.

The company has offered buyouts and early retirement packages to all 75,000 U.S. production workers and plans to shutter 16 plants to reduce manufacturing capacity to match lower demand for its products.