Ford to sell $500 million in shares
Written on August 19, 2008
Ford Motor Co. said Friday it will sell $500 million in common stock to pay off debt at its financing arm, according to a regulatory filing.
The Dearborn, Mich.-based automaker said in a filing with the Securities and Exchange Commission that it will sell the shares from time to time, then use the proceeds to buy Ford Motor Credit LLC outstanding debt securities in the open market or privately negotiated deals.
Ford Motor Credit has struggled in recent months, taking a $2.1 billion charge during the second quarter related to the drop in used vehicle prices.
The move also further dilutes Ford stock at a time when its price is already near record lows no fax payday loans. As of July 29, the company had roughly 2.19 billion common shares outstanding, according to a filing with the SEC.
Ford (F, Fortune 500) shares have dropped 24% in the last year.
Goldman, Sachs & Co. (GS, Fortune 500) will handle the sale, Ford said.
Ford shares rose 1 cent to finish Friday at $5.11.
Filed in: term.