Ford Motor Said to Seek Expansion of Credit Lines to $12 BillionMatt Robinson
Ford Motor Co., the second-largest U.S. automaker, is seeking to expand its credit lines by $1.3 billion to $12 billion.
The company is planning to raise a $9 billion revolving loan that expires in five years and a $3 billion financing pact that lapses in three years, according to a person with knowledge of the offering, who asked not to be identified because terms aren’t set. The Dearborn, Michigan-based company may pay 150 basis points, or 1.5 percentage points, more than the three-month London interbank offered rated on both portions that replace a $10.7 billion credit line due 2017.
The company has improved its finances to about the best level since 1999 after Chief Executive Officer Alan Mulally has revived the company by cutting costs and overhauling a lineup of vehicles. Ford plans to spend heavily this year as it introduces more vehicles than ever.
JPMorgan Chase & Co. is leading the financing, the person said. Under a revolver, money can be borrowed again once it’s repaid.