Ford's Bond Conversion Plan Cuts Its Debt by $1.9 Billion
The automaker, which will also pay $534 million in cash premiums to the debt holders, will take a $960 million charge in the fourth quarter because of the conversion, Ford said in a statement. Ford's annual interest expenses will be reduced by $180 million because of the lower debt.
As of Oct. 26, the 274 million shares were worth about $3.9 billion. The company said Wednesday that the additional shares have already been factored into Ford's earnings-per-share calculations.
Ford shares rose 1.3% to $15.91 near the end of trading Wednesday afternoon. The stock is up 59% this year.