The Motley Fool Discussion Boards

Previous Page

Stocks F / Ford Motor Company


Subject:  Re: Ford Refi Date:  1/3/2013  4:15 PM
Author:  JustMee01 Number:  17322 of 18388

Proceeds are for buying back costlier debts and to make voluntary payments to its pension plan.

I wonder if that statement has something to do with the $0.50 drop in F-A shares, even as common rallies.

They have higher coupon issues than F-A, so it could be ignored, even if Ford were to call some debt. I've been expecting more calls for a while now, but few have materialized. A substantial portion of Ford's automotive debt is uncallable, but there are some notably high coupon exceptions that would be worth taking out. I guess the combo of high pension obligations and capex needs in EasternEurope and Asia put them on hold.

This line may be a signal that they're thinking about taking more out. It would be wise to refi it while rates are low. I hope they do more.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us