US:Ford to offer 30-year notes
Ford to offer 30-year notes
Ford Motor Co., expecting to drain $17 billion in cash by 2009, will offer $3 billion in 30-year notes convertible to common shares, part of an $18-billion financing package to keep the company going.
Underwriters will have the option to purchase as much as $450 million of additional unsecured notes, the company said Monday in a statement. Managers of the sale include BNP Paribas, Citigroup Inc., Goldman, Sachs & Co. and JPMorgan Chase & Co.
Last week, Ford put up assets, ranging from factories to its "blue oval" trademark, as collateral for another $15 billion in loans. Ford is borrowing the money to pay for buyout packages for U.S. factory workers and to cover the expense of closing North American plants as its U.S. sales sink.
Chief Executive Officer Alan Mulally, who assumed the post at the second-largest U.S. automaker in September, is overseeing plans to cut 40,000 jobs in North America and close nine factories by 2008. Ford lost $6.99 billion in the first nine months of the year on falling sales of pickups and SUVs, which it relies on for profit.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....