Ford Motor Credit, the finance arm of Ford Motor Co., is planning to sell a new issue of bonds due 2020, according to a filing with the Securities and Exchange Commission.
The new bonds will be underwritten by Citigroup Inc., Bank of America Merrill Lynch, JPMorgan Chase & Co. and Morgan Stanley. The bonds are expected to be benchmark size, with investors expecting the company to issue at least $1 billion.
Ford is the only one of Detroit's Big Three automakers that dodged a Chapter 11 filing. It raised billions of dollars through bond sales before the credit crunch, providing cash to survive the downturn, and has come back to the bond market again in recent months.
Net proceeds of the bond sale will go toward Ford Motor Credit's general funds, according to the filing, and will be available for the purchase of receivables, for loans and for use in connection with the retirement of debt.
