Ford Completes Amendment And Extension Of Existing Revolving Credit Facility

After quite some time spent on it, the company of Ford has come up with amendments and extension of the business plans. The company will commit a total of $9 billion till the year 2015. What this also shows is the financial strength and flexibility of the company. Extending the company’s credit would result in increasing the liquidity of the company and also the financial state.

The total commitment of the company was supposed to be of $8.9 billion, but the new amendment increases this number to $9. According to the old commitments about $130 million were dedicated to credit letters. The new amendment sees about $9 billion credit papers maturing on 30th November, 2015. Out of them, about $300 million are scheduled to mature on 30th November 2013.

The collateral to the above amendments and extensions would be made clear and declared once the Ford Company gets two nods out of the three major rating organizations. There is no doubt that the amendments would mean that the credit limits are extended so are the maturity durations. Apart from that one can also take help of revolving credit. This would also see elimination on debt payment limitation once collateral is declared.

Written by:

Published on: March 16, 2012

Filled Under: Autos News, Ford

Views: 1471

Leave a Reply

Your email address will not be published. Required fields are marked *