Ford’s Cause for Fiesta – Debt Reduced by $9.9b!
Ford has reduced their financial debt by $9.9 billion dollars already! Now, if only Chrysler and GM could follow in their footsteps. Ford announced that it had trimmed $9.9 billion from its debt mountain by “convincing” investors to exchange debt for cash and stock. What does this mean? Well, basically FoMoCo will use $2.4 billion in cash and stock to buy back the debt. Ford agreed to pay investors about $380 in cash and stock for every $1,000 in bonds – or, according to Ford company officials, 38 cents on the dollar.
$9.9b Sure buys lots of Hot Wheels
This is good news for Ford as well as their Fans! It’s time for a Fiesta – and speaking of which we know two people who will be happy that FoMoCo is heading in an upward swing. Our new friends Brad & Emma want to share their love of Ford’s Fiesta more than we do! Check them out at www.followthefiesta.com.
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