By Abigail W. Adams
Portland, Me., March 17 – Ford Motor Co. priced $2 billion of five-year convertible notes (Ba2/BB+/BB+) after the market close on Tuesday at par with a coupon of 0% and an initial conversion premium of 40%, according to a company news release.
Pricing came in line with talk for a fixed coupon of 0% and at the cheap end of talk for an initial conversion premium of 40% to 45%, according to a market source.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are active bookrunners for the Rule 144A offering, which carries a greenshoe of $300 million.
The notes are non-callable until March 20, 2024 and then subject to a 130% hurdle.
They will be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $1.971 billion assuming no exercise of the greenshoe.
Proceeds will be used for general corporate purposes, which may include the repayment of debt.
Ford is a Dearborn, Mich.-based car manufacturer.
| Issuer: | Ford Motor Co.
|
| Securities: | Convertible senior notes
|
| Amount: | $2 billion
|
| Greenshoe: | $300 million
|
| Maturity: | March 15, 2026
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 40%
|
| Conversion price: | $17.49
|
| Conversion rate: | 57.1886
|
| Call options: | Non-callable until March 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | March 16
|
| Settlement date: | March 19
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A
|
| Talk: | Fixed coupon of 0% and initial conversion premium of 40% to 45%
|
| Stock symbol: | NYSE: F
|
| Stock price: | $12.49 at market close March 16
|
| Market capitalization: | $48.81 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
