Ford to cut conversion prices on convertibles due 2016, 2036, warrants

By Tali David

Minneapolis, Nov. 2 - Ford Motor Co. said it will adjust the conversion prices for its two outstanding convertible debt securities and its warrants as a result of dividend payments totaling $0.05 per share.

The conversion price for Ford's 4.25% senior convertible notes due Nov. 15, 2016 will be lowered to $9.10 per share from $9.15 per share, effective Nov. 9. The new conversion price is equivalent to an initial conversion rate of 109.8554 shares per $1,000 principal amount of notes, up from 109.3202 shares per $1,000 of notes.

The 2016 convertibles were issued on Nov. 9, 2009, and $882,743,000 principal amount remains outstanding.

Effective Dec. 15, the conversion price of the company's 4.25% senior convertible notes due 2036 will be adjusted to $9.01 per share from $9.05 per share. The corresponding initial conversion rate will increase to 111.0495 shares per $1,000 note from 110.5085 shares per note.

The 2036 notes were issued on Dec. 15, 2006, and $24,996,000 principal amount remains outstanding.

Effective Dec. 11, the exercise price of $9.05 at which each of the company's warrants is exercisable to purchase 1.0167 shares of common stock will be adjusted to $9.01 and the number of shares for which each warrant is exercisable will also be adjusted to 1.0212.

The warrants were issued on Dec. 11, 2009, and 362,030,407 remain outstanding.

Ford is a Dearborn, Mich.-based automaker.

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