Ford extends $7.2 billion of revolver to 2013, converts $724 million to term loan

By Sara Rosenberg

New York, Nov. 24 - Ford Motor Co. extended $7.2 billion of its revolving credit facility commitments to Nov. 30, 2013 from Dec. 15, 2011, according to a news release.

In addition, $724 million of revolver commitments will convert to a new term loan that matures on Dec. 15, 2013.

Each lender that agreed to extend the maturity of its revolver commitment was permitted to reduce its commitment by up to 25%.

On Dec. 3, the company will repay $1.9 billion of the existing revolver loans to effect the commitment reductions elected by extending lenders. Prior to the amendment, revolver lenders held commitments totaling $10.7 billion, while, after the amendment, they hold a total of $8.1 billion of extended and non-extended commitments and the new term loan.

Lenders that agreed to extend their revolver commitments are getting a 100 basis point increase in pricing and are being paid an upfront fee.

Lenders with commitments totaling $886 million have elected not to extend those commitments, which will mature on the original maturity date of Dec. 15, 2011.

Lenders also approved an amendment to the credit facility that expands the existing limitations on debt prepayments and repurchases to allow for further balance sheet improvements.

Ford is a Dearborn, Mich.-based manufacturer and distributor of automobiles.

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