Home / Industry / Auto / Ford issues $8 bn debt securities after coronavirus causes $2 bn loss

Ford issues $8 bn debt securities after coronavirus causes $2 bn loss

The Dearborn, Michigan-based company, which lost its investment-grade status in March, raised new funds with a three-part debt offering, according to a regulatory filing.

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Ford had earlier drawn down over $15 billion from revolving credit lines to ride out the pandemic, which forced the shutdown of its North American and European factories during the past month.

Reuters

3 min read Last Updated : Apr 18 2020 | 8:08 PM IST

Ford Motor Co (F.N) on Friday raised $8 billion from corporate debt investors to shore up its cash reserves as the coronavirus outbreak pummeled vehicle sales and production, resulting in an estimated loss of about $2 billion for the first quarter.

The Dearborn, Michigan-based company, which lost its investment-grade status in March, raised new funds with a three-part debt offering, according to a regulatory filing.

Investors said Ford benefited from the US Federal Reserve’s move last week to backstop debt offerings by companies that lost investment-grade credit ratings after the COVID-19 crisis accelerated in the United States, International Financing Review

Topics : Coronavirus Lockdown Ford Ford Motor General Motors US economy

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