Ford plans amendment to allow $14 billion second-lien debt incurrence

By Sara Rosenberg

New York, June 29 - Ford Motor Co. plans to amend its credit facility to increase the amount of allowable second-lien debt to $14 billion from $4 billion, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The company is seeking this amendment because it submitted an application for term loans to the United States Department of Energy under the Advanced Technology Vehicles Manufacturing Incentive Program.

And, on June 23, the Department of Energy provided Ford with a conditional commitment letter for a $5.937 billion multi-draw term loan due on June 15, 2022.

Advances against the loans may be requested from the date of the definitive agreements to June 30, 2012.

Each advance will bear interest at a blended rate based on the Treasury yield curve at the time such advance is borrowed based on the principal amortization schedule for that advance.

Proceeds from the loan will be used to finance certain costs eligible under the Advanced Technology Vehicles Manufacturing Incentive Program that are incurred though 2011 in the implementation of 13 advanced technology vehicle programs.

Ford is a Dearborn, Mich.-based automaker.

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