Ford extends most of its $10.7B credit line

AP News
Posted: Nov 24, 2009 4:51 PM

Ford Motor Co. said Thursday it has extended the maturity dates on most of its $10.7 billion revolving line of credit for two years, preserving cash to use for its turnaround efforts.

Ford said lenders have agreed to give the automaker until Nov. 30, 2013 to pay back $7.2 billion of the loan, instead of its original due date in December 2011. They also agreed to convert $734 million to a term loan due in December 2013.

In exchange, Ford will repay $1.9 billion worth of the revolver next Friday.

Lenders owed $866 million worth of loans declined to extend the payback date past 2011.

Ford, the only U.S. automaker not to file for bankruptcy protection or take bailout aid, announced earlier this month that it wanted to extend the $10.7 billion facility and issue $3 billion in stock and equity in order to bolster its balance sheet.

Ford shares rose 8 cents to close at $8.81 Tuesday.