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Ford to Cut Debt Load by Another $3 Billion


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Every time Ford makes one of these moves, it reminds me all over again how proud I am that Ford is paying back its debts, not relying on the U.S. government to write debts off. The fact that GM is now using its debt advantage to cut prices in the market and screw up the price discipline that has been built just makes me sick.

 

 

Ford to cut debt load by another $3 billion

From staff reports

Automotive News -- February 10' date=' 2011 - 4:25 pm ET

 

 

DETROIT -- Ford Motor Co., taking another step to achieve an investment grade credit rating, announced plans today to reduce its corporate debt levels by another $3 billion with the planned redemption or conversion of preferred securities. The redemption of the convertible debentures will cut Ford's debt from $19.1 billion at the end of 2010 to near $16 billion.

 

The move -- the latest in a series of similar measures -- will also reduce Ford’s annual interest costs by $190 million and result in a $60 million charge during the first quarter, the company said.

 

"We remain focused on reducing our automotive debt as the core automotive business continues to strengthen," Lewis Booth, Ford’s chief financial officer, said in a statement. The $3 billion reduction follows $14.5 billion in debt reductions accomplished by the automaker in 2010. [/quote']

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Bubububububu getting out of debt is so un-American! :confused:

 

 

While this is great news for the overall health of Ford Motor Company and for me as a common stockholder, it kinda sucks for me as a holder of 5000 of these preferred shares that are being retired. It was really nice getting the .81c per quarter per share dividend.

 

I plan on taking the conversion instead of the cash buyout, so I hope that after all of the debt reduction, Ford can actually pay a dividend on the common shares, at least in a year or two........

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