Ford greenshoe exercised, raising 4.25% convertibles to $2.88 billion

By Marisa Wong

Milwaukee, Nov. 9 - Ford Motor Co. announced that the underwriters of its recent offering of 4.25% senior convertible notes due 2016 exercised the $375 million over-allotment option in full on Nov. 6, increasing the size of the offering to $2.875 billion. The deal closed on Monday, according to an 8-K filed with the Securities and Exchange Commission.

Ford priced $2.5 billion of the seven-year convertibles on Nov. 3 to yield 4.25% with an initial conversion premium of 25%.

The joint bookrunners were Citigroup, Bank of America Merrill Lynch, J.P. Morgan, Barclays Capital, Deutsche Bank, Goldman Sachs, Morgan Stanley and RBS. BNP Paribas and HSBC were also included in the underwriting syndicate.

Net proceeds from the offering totaled $2,810,312,500 and will be used for general corporate purposes.

Ford is a car and truck maker based in Dearborn, Mich.

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