Ford says its commitments amount to $7.2 billion. In addition to the aforementioned extension, Ford's lenders will convert $724 million of the revolving loans to a new term loan maturing on December 15, 2013. This means no less than $7.9 billion have been extended to 2013.
“We are very pleased with the results of the amendment, extension to our revolving credit facility, and new term loan,” Neil Schloss, Ford vice president and treasurer said in a release. “We appreciate the support of our banking partners as today’s actions will provide additional liquidity through 2013.”
Of course, Ford had to give something up in return for the concessions. According to the carmaker, every lender who agreed on the extension will receive a 1 percentage point increase in interest rate margins, an increase in quarterly fees and payment of an upfront fee. Still, lenders with commitments totaling $886 million chose not to take the offer.
In addition to the extension, Ford also announced it will repay $1.9 billion of the existing revolving loans. Ford claims now, after the extension has been agreed upon, it owes $8.1 billion of revolving commitments and $724 million of the new term loan.
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