Published on 12/5/2016 in the Prospect News Investment Grade Daily.
New Issue: Ford Motor prices $2.8 billion of 10-, 30-year senior notes
By Cristal Cody
Eureka Springs, Ark., Dec. 5 – Ford Motor Co. priced $2.8 billion of senior notes (Baa2//BBB) in two parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Ford Motor sold $1.5 billion of 4.346% 10-year notes at par to yield a spread of 195 basis points over Treasuries.
The company also priced $1.3 billion of 5.291% 30-year notes at par with a spread of 220 basis points over Treasuries.
Both tranches priced on the tight side of guidance.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The automaker is based in Dearborn, Mich.
| Issuer: | Ford Motor Co.
|
| Amount: | $2.8 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Lead managers: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC
|
| Co-managers: | Banco Bradesco BBI SA, BB Securities Ltd., BMO Capital Markets Corp., BNP Paribas Securities Corp., CIBC World Markets Corp., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Lloyds Securities Inc., Mizuho Securities USA Inc., RBS Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 8
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | Dec. 8, 2026
|
| Maturity: | $1.5 billion
|
| Coupon: | 4.346%
|
| Price: | Par
|
| Yield: | 4.346%
|
| Spread: | Treasuries plus 195 bps
|
| Price guidance: | Treasuries plus 200 bps area, plus or minus 5 bps
|
| Call feature: | On or after Sept. 8, 2026 at par
|
|
|
| 30-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | Dec. 8, 2046
|
| Coupon: | 5.291%
|
| Price: | Par
|
| Yield: | 5.291%
|
| Spread: | Treasuries plus 220 bps
|
| Price guidance: | Treasuries plus 225 bps area, plus or minus 5 bps
|
| Call feature: | On or after June 8, 2046 at par
|
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