Sell $1.75 Billion of Five-Year Notes
©2010 Bloomberg News
By Craig Trudell and John Detrixhe
April 6 (Bloomberg) -- Ford Motor Co. plans to sell $1.75 billion of five-year notes, according to a person familiar with the offering.
The debt will be issued by the automaker's Ford Motor Credit Co. unit and may be sold today, said the person, who declined to be identified because terms aren't set. Proceeds will be used for general corporate purposes, the person said.
The debt may yield 7.125 percent, the person said. The notes are expected to be rated B1 by Moody's Investors Service and B- by Standard & Poor's, according to the person.
Ford Motor Credit's 8 percent notes due in 2016 traded yesterday at 105.5 cents on the dollar to yield 6.954 percent, or 2.971 percentage points more than similar-maturity Treasuries, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
The company, which provides loans to car buyers and dealers, last issued corporate bonds on Jan. 14, selling $500 million of 10-year securities at a yield of 8.121 percent in a reopening of 8.125 percent notes initially offered in December, according to data compiled by Bloomberg.
--Editors: Chapin Wright, Mitchell Martin