By Paul A. Harris
St. Louis, Aug. 3 - Ford Motor Credit Co. priced an upsized $2.25 billion two-part junk bond transaction (Ba3/B+/BB) on Thursday, according to a market source.
The credit arm of Ford Motor Co. priced an upsized $1.50 billion tranche of five-year senior notes at par to yield 9 7/8%, on top of price talk. The tranche was upsized from $1.25 billion.
Ford Motor Credit also prices a $750 million add-on to its Libor plus 445 basis points floating-rate notes due April 15, 2012 at 102, again on top of price talk.
UBS Investment Bank, Merrill Lynch & Co. and BNP Paribas were joint bookrunners for the registered deal, the overall size of which was upsized by $250 million to $2.25 billion from $2.0 billion. Bank of New York, Commerzbank and Dresdner Kleinwort were the co-managers.
Proceeds will be used for general corporate purposes, including the purchase of receivables and loans, as well as to refinance debt.
| Issuer: | Ford Motor Credit Co.
|
| Amount: | $2.25 billion (upsized from $2 billion)
|
| Bookrunners: | UBS Investment Bank, Merrill Lynch & Co., BNP Paribas
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| Co-managers: | Bank of New York, Commerzbank, Dresdner Kleinwort
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| Trade date: | Aug. 3
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| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Fitch: BB
|
| Distribution: | SEC registered
|
|
|
| New five-year notes
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| Amount: | $1.50 billion (upsized from $1.25 billion)
|
| Maturity: | Aug. 10, 2011
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| Security description: | Senior notes
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| Coupon: | 9 7/8%
|
| Price: | Par
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| Yield: | 9 7/8%
|
| Spread: | 494 bps
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| Price talk: | 9 7/8%
|
|
|
| Add-on
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| Amount: | $750 million
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| Maturity: | April 15, 2012
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| Security description: | Add-on to the Libor plus 445 bps floating-rate notes
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| Coupon: | Three-month Libor plus 445 bps
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| Price: | 102.00
|
| Put: | Putable on April 15, 2009 with six months notice
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| Price talk: | 102.00
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