Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Took a little longer than I expected, but 2 billion at 5% is a nice way to start the new year:

Let's say they are getting rid of bonds paying 7.5% for the 5%. 2.5% savings on $2 billion. $50 million before refi costs.

Last year they had 12 billion in debt. Probably more to come? Time will tell.



"Ford is taking advantage of what it considers to be very favorable market conditions to issue low-cost, long-term debt to improve its balance sheet," the company says in the bond prospectus.

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

Fitch Ratings said Thursday that Ford is "essentially offsetting any debt increase with a reduction in its substantial pension liabilities," so the new debt "has no effect on the company's current ratings or outlook."

The bonds are expected to pay investors 1.90 percentage point over comparable Treasurys, or roughly 4.97%. When Ford sold similar debt 12 years ago, it paid a fixed-rate of 7.45%.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.