Ford’s $2 billion convertible note offering prices, with an initial conversion rate implying a 40% premium

Ford Motor Co.

announced Wednesday that its $2.0 billion convertible note offering has priced, with an initial conversion rate that prices the stock at a 40% premium. Ford’s stock fell 1.6% in premarket trading, after shedding 5.4% on Tuesday after the offering was announced. The automaker said Wednesday that the notes will not bear interest and will not accrete, and will mature on March 15, 2026. The initial conversion rate for the notes is 57.1886 shares of Ford’s common stock for every $1,000 principal amount of notes. That is the equivalent of $17.49 per share, or 40% above the stock’s Tuesday closing price of $12.49. The notes can be redeemed by Ford on or after March 20, 2024, if the stock price has been at least 130% of the conversion price for at least 20 trading days during a 30-day period. Ford plans to use the proceeds from the notes offering for general corporate purposes, including the potential paying down of debt. Ford’s stock has rallied 37.6% over the past three months through Tuesday, while the S&P 500

has gained 6.5%.

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