The Dearborn-based automaker will incur an expenditure of time debt conversion for the third quarter of this year in connection with the offer, the company said in a Commission Securities and Exchange filing. " Assuming that 100 percent of the outstanding Trust Preferred Securities are valid and accepted an offer of conversion, the conversion of debt pretax spending is estimated at $ 1.47 billion, " said.
The manufacturer Ford said car that the estimate is based on the June 29, 2007 market prices of Ford common shares of $ 9.42. Ford said that each convertible security, with a liquidation value of $ 50, can be exchanged for 2.8249 shares of common stock plus a premium of Ford in Ford shares valued at 14.25 dollars. The recovery of cars, which lost $ 12.6 billion in 2006, is making the offer in order to increase its stockholders& 39; equity, reduce debt and limit the level of interest expense, the company said in the filing. Thus, the automaker could focus on the needs of production, the quality of Ford parts, and the goal sales.
The number of shares received premium is determined by the average market price of Ford shares on July 25 , 26 and 27, 2007. The conversion offer is being made pursuant to an offering circular and other related documents, each dated July 2, 2007. Completion of the offer is subject to conditions described in the offer document conversion. Subject to applicable law, Ford may waive the conditions applicable to the offer or extend, terminate or amend the offer offer.
The conversion is done only on the terms and subject to the conditions described in the offering circular and other documents Related, which was brought to the attention of holders of trust preferred securities, which are advised to read these documents because they contain important information. Copies of the offering circular and related documents were filed with the SEC.
Holders of trust preferred securities may throw questions about the conversion offer or requests for copies of the offering circular and related documents for free to Georgeson, Inc., Ford Information Agent for the offer of conversion. Interested parties can call free at 888-605-7541. Capital Trust II, a business trust, was founded in 2001 under the laws of the State of Delaware and is a wholly-owned subsidiary of Ford.
" As we continue to make progress in restructuring our operations to return to the automobile profitability, also focused on improving our balance sheet, this conversion are offered to " said Don Leclair, Ford& 39;s executive vice president and chief financial officer officer.
The preferred convertible securities are issued by the manufacturer automobiles wholly owned trust subsidiary of Ford Motor Company Capital Trust II. The trust& 39;s only asset is $ 5.2 million principal amount of 6.5 percent junior subordinated convertible bonds due in 2032, which was canceled to the extent of the trust preferred securities will be converted into common shares of Ford. The company has guaranteed trust preferred securities through bonds and other instruments.
Convertibles are bonds or preferred shares that can be exchanged for a specified number of common shares. They actually let investors benefit from the increases in stock price, but with the performance and safety of a debt instrument. Ford of the offer will expire at 5:00 pm EDT July 31, 2007.
Ford is a multinational company of America and the third largest in the world after the automaker Toyota Motor Corp. and General Motors Corp., on the Based sales worldwide. Last year, Ford earned more quality awards from JD Power than any other automaker. dave flo
Bookmark it:
No comments:
Post a Comment