Ford Motor Co. (NYSE: F)’s finance arm may sell $1 billion worth of five-year notes, according to a report from Bloomberg News.
Ford Motor Credit, the second-largest issuer of high-yield corporate debt, may issue the debt as soon as today, said the report citing people familiar with the matter that remained anonymous because the terms of the deal weren’t set. The company has already issued $3.5 billion worth of junk-rated bonds earlier in the year.
Proceeds from the sale will be added to Ford Motor Credit’s general fund, said the company in a prospectus filing with the U.S. Securities and Exchange Commission which did not specify the size or timing of the offering.
Ford Motor Credit has $1.75 billion in debt which is due on April 2015, which climbed $0.01 on Monday to 106.5 cents on the dollar for a yield of 5.38%, according to data from the Financial Industry Regulatory Authority (FINRA).
Moody’s Investors Service has given Ford Motor Credit a credit rating of Ba3, three steps lower than an investment grade ranking. S&P gives Ford Motor Credit a B+, one level lower than Moody’s.
Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries also engage in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. The Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa and Volvo. The Financial services include the operations of Ford Motor Credit Company and Other Financial Services. In August 2010, the Company completed the sale of its Swedish Volvo Car unit and related assets to China’s Zhejiang Geely Holding Group Co.
Shares of Ford Motor Co. (NYSE: F) traded down 0.04% hitting $11.98 during mid-day trading on Monday.
