Ford is shuttering 16 more production plants. Read the story here.
On the financial side...Ford revealed recently an SEC filing that it will expand its restructuring financing package to $22-23 billion from the original $18 billion. The company increased its convertible note offering to $4.5 billion from $3 billion to match investor demand. Ford also boosted its revolving credit to $11 billion, up from $8 billion. The credit is backed by Ford's assets; to enlarge it, the company must pay down debt as per last month's $7 billion term loan agreement or collateralize its 1/3 stake in Mazda Motors. A company spokesman said that latter is unlikely.
Ford's increased credit is Wall Street's largest recorded leveraged loan, $17.5 to 18.5 billion. The credit boost is thanks to "overwhelming support by lenders" according to its SEC filing. Analysts had mixed reactions to the news. Ford shares sank by 32 cents to $7.36.
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