Ford amends revolver, extending $9 billion of commitments to 2015

By Sara Rosenberg

New York, March 15 - Ford Motor Co. amended and extended its revolving credit facility on Thursday, pushing out the maturity on $9 billion of commitments by two years to Nov. 30, 2015, according to an 8-K filed with the Securities and Exchange Commission.

The company also has about $307 million of revolver commitments maturing on Nov. 30, 2013.

By comparison, prior to the amendment and extension, commitments under the revolver totaled $8.9 billion.

In addition to the upsize and maturity extension, the amendment eliminated the limitation on debt prepayments and dividends upon the release of collateral.

Furthermore, the cumulative growth amount cash flow percentage was increased to 75% from 50%, and the incremental facilities cap was increased to $12 billion from $2 billion.

The collateral pledged for revolver borrowings will be released when the company's senior long-term unsecured debt receives investment-grade ratings from at least two of the three major rating agencies.

JPMorgan Chase Bank is the administrative agent on the deal.

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

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