Ford Motor to terminate conversion rights on its 4.25% convertibles

By Tali David

Minneapolis, Dec. 20 - Ford Motor Co. has elected to terminate the conversion rights with respect to its 4.25% senior convertible notes due 2036, effective as of the close of business on Jan. 21, according to a press release.

Holders of the notes may elect to convert their notes into shares of Ford common stock until the close of business on Jan. 21 at the current conversion rate of 114.0466 shares of Ford common stock for each $1,000 principal amount of notes converted.

The conversion ratio is equivalent to a conversion price of $8.77 per share. Ford stock closed at $15.30 (NYSE: F) on Thursday.

The company said it intends to settle all conversions in cash.

The convertibles were originally issued on Dec. 15, 2006, and about $25 million remain outstanding.

Ford is a Dearborn, Mich.-based automaker.

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