Ford increases credit facility's second-lien debt limit to $14 billion

By Angela McDaniels

Tacoma, Wash., July 28 - Ford Motor Co. amended its credit facility to increase the amount of allowable second-lien debt to $14 billion from $4 billion, according to an 8-K filing with the Securities and Exchange Commission.

The company announced plans for the amendment on June 29.

Ford said it was seeking the amendment because it submitted an application for term loans to the Department of Energy under the Advanced Technology Vehicles Manufacturing Incentive Program.

As previously reported, the Department of Energy provided Ford with a conditional commitment letter for a $5.94 billion multi-draw term loan due on June 15, 2022.

Advances against the loans may be requested through 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 some eligible costs under the incentive program that are incurred though 2011 in the implementation of 13 advanced technology vehicle programs.

The amendment was reached July 22.

JPMorgan Chase Bank, NA is the administrative agent.

Ford is a Dearborn, Mich.-based automaker.

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