Ford calls 4.25% convertible notes due 2016 for redemption on Nov. 21

New York, Oct. 21 – Ford Motor Co. said it will redeem its $882 million of 4.25% senior convertible notes due 2016 on Nov. 21.

The company will pay par plus accrued interest for the securities.

In addition, Ford terminated conversion rights on the notes effective Nov. 20.

Holders may convert their notes until the close of business on Nov. 19.

Conversions will be settled in stock, the company said. It added that the increase in shares outstanding will be offset by share repurchases made earlier in the year.

Holders who wish to receive the Nov. 15 interest payment on the notes must not convert their notes before Nov. 1, which is the record date for the payment.

Conversions before Oct. 29 will be at the current conversion rate of 114.6066 shares per $1,000 principal amount of notes, equivalent to a conversion price of $8.73 per share.

Conversions made on Oct. 29 or later will be at an adjusted rate to reflect the declared common stock dividend that is payable on Dec. 1. Ford said the adjustment will be announced on Oct. 29 and will be favorable to holders of the convertibles.

Ford stock closed at $14.17 on Monday.

Ford is a Dearborn, Mich., auto manufacturer.

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