FoMoCo announced today that it has successfully completed its debt restructuring reducing it by $9.9 billion from $25.8 billion on Dec. 31, 2008. This will reduce Ford’s annual cash interest expense by more than $500 million based on current interest rates.
“By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise,” said Ford President and CEO Alan Mulally. “As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth.”
Through its finance arm Ford Motor Credit, Ford used $1 billion in cash to buy back $2.2 billion of debt at 47 cents on the dollar and $1.1 billion in cash to purchase $3.4 billion of unsecured notes.
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