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

By Marisa Wong

Madison, Wis., July 31 - Ford Motor Co. said it will adjust the conversion prices for its two outstanding convertible debt securities as a result of dividend payments totaling $0.15 per share.

The conversion price for Ford's 4.25% senior convertible notes due Nov. 15, 2016 will be lowered to $9.15 per share from $9.30 per share, effective Aug. 1. The new conversion price is equivalent to an initial conversion rate of 109.3202 shares per $1,000 principal amount of notes, up from 107.5269 shares per $1,000 of notes.

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

Effective Aug. 6, the conversion price of the Dearborn, Mich.-based automaker's 4.25% senior convertible notes due 2036 will be adjusted to $9.05 per share from $9.20 per share. The corresponding initial conversion rate will increase to 110.5085 shares per $1,000 note from 108.6957 shares per note.

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

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