Ford to launch $15 billion credit facility Wednesday

By Sara Rosenberg

New York, Nov. 27 - Ford Motor Co. is scheduled to hold a bank meeting on Wednesday to launch its proposed $15 billion senior secured credit facility, according to a market source.

Citigroup, Goldman Sachs and JPMorgan are the joint lead arrangers on the deal.

The facility consists of an $8 billion five-year revolver and a $7 billion term loan B, the source said.

Security is first-priority liens on principal domestic manufacturing facilities and substantially all of the company's other domestic automotive assets, certain intellectual property, certain real property, all or a portion of the stock of certain subsidiaries, certain intercompany payables and notes, and up to $4 billion of domestic cash without restriction on its use.

Proceeds from the credit facility, along with about $3 billion raised in unsecured capital market transactions, will be used to replace the company's existing unsecured $6.3 billion credit facility, address near- and medium-term negative operating-related cash flow, fund its restructuring, and provide added liquidity to protect against a recession or other unanticipated events.

The company expects these transactions to close before Dec. 31.

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

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