Ford's Canadian-based finance business successful in ABS market

By Lisa Kerner

Charlotte, N.C., June 22 - Ford Motor Co.'s financial services unit, Ford Motor Credit Co. had liquidity of $35.5 billion at March 31, with $6.6 billion of excess uncommitted capacity to shift among markets and asset classes where most needed, said manager of debt capital markets Matt Stovcsik during a presentation Monday at the RBC Capital Markets 2011 Canadian High Yield Conference in Toronto.

Stovcsik highlighted Ford Credit Canada Ltd.'s August 2010 reentry into the unsecured debt markets with two oversubscribed benchmark issues: C$550 million of 7.5% notes due August 2015 and 4.875% notes due March 2014.

The company has had a regular presence in the Canadian asset-backed securitization market since 1999.

According to Stovcsik, Ford Credit Canada has completed over 22 ABS transactions, for proceeds of approximately C$20 billion, since January 2006.

Ford Credit had $13 billion of cash at the end of the quarter and expects its balance sheet to grow to between $110 and $120 billion by the middle of the decade.

Looking at 2011, Stovcsik said Ford Credit expects to need public term funding of $18 billion to $22 billion, including $7 billion to $9 billion of unsecured transactions debt and $8 billion to $11 billion from private transactions.

Ford Credit completed $15 billion in term funding year to date, including $4 billion of unsecured debt.

Ford is a Dearborn, Mich.-based domestic carmaker.

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