FI showroom red and grey logo
MenuMENU
SearchSEARCH

Ford Credit Agrees to Restructure Ford's Debt

Ford Motor Credit Company announced last Wednesday that its board of directors and the board of directors of Ford Motor Company have approved a plan to restructure Ford’s debt through a combination of a conversion offer by Ford and tender offers by Ford Credit.

by Staff
March 10, 2009
2 min to read


DEARBORN, Mich. — Ford Motor Credit Company announced last Wednesday that its board of directors and the board of directors of Ford Motor Company have approved a plan to restructure Ford’s debt through a combination of a conversion offer by Ford and tender offers by Ford Credit.

As part of this debt restructuring plan, Ford Credit has commenced a $1.3 billion cash tender offer to purchase Ford’s unsecured, nonconvertible debt securities, or notes, of which approximately $8.9 billion aggregate principal amount is outstanding as set forth in detail in the table below.

Ad Loading...

Ford Credit also has commenced a separate $500 million cash tender offer to purchase Ford’s senior secured term loan debt, of which $6.9 billion aggregate principal amount is outstanding, under Ford’s secured credit agreement on Dec. 15, 2006. No debt securities of Ford Credit are included in these tender offers.

“The tender offers we are announcing today will play a key role in supporting Ford's plan to create a healthy, profitable enterprise,” said Ford Credit Chairman and CEO Mike Bannister. “It is in Ford Credit’s best interest to advance Ford’s long-term financial stability as it will strengthen our ability to profitably support the sale of Ford products.”

Any notes acquired by Ford Credit will be retired in settlement of existing intercompany tax liabilities to Ford or in distributions to Ford. Any term loan debt acquired by Ford Credit is expected to be distributed to its parent, Ford Holdings LLC, and forgiven. These payments and distributions by Ford Credit are consistent with its previously announced plans to return capital to Ford.

Another part of this debt restructuring plan involves Ford’s conversion offer of its 4.25 percent senior convertible notes due Dec. 15, 2036, in which it will pay a premium in cash to induce the holders to convert debt for shares of Ford’s common stock.

Ford will also defer future dividend payments on the 6.50 percent Cumulative Trust Preferred Securities of Ford Motor Company Capital Trust II beginning in April.

More Auto Finance

Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Ad Loading...
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Ad Loading...
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →
Couple talking with auto salesman next to new car inside dealership
Auto Financeby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Photo of a loan contract on a desk
Auto Financeby Hannah MitchellMay 13, 2026

Auto Lenders, Consumers on a Tightrope

April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.

Read More →
Ad Loading...
black background with orange text saying Alec Hagey Toyota Financial Services President and CEO effective April 6 with picture of Alec Hagey
Auto Financeby Lauren LawrenceApril 6, 2026

Toyota Financial Services President Replaced

Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.

Read More →