Ford Motor Credit Kicks Off First Bond Sale After Rating Upgrade
Ford Motor Credit Co. LLC, the financing arm of Ford Motor Co., has kicked off its first bond sale since its credit rating was upgraded. The company is offering $1.5 billion of bonds in three parts, according to a person familiar with the matter.
The offering is the first since Ford Motor Credit’s rating was upgraded to investment grade by Moody’s Investors Service in October. The upgrade was a major milestone for the company, which had been rated below investment grade since 2005.
The bonds are being offered in three parts: a $500 million, five-year tranche; a $500 million, 10-year tranche; and a $500 million, 30-year tranche. The bonds are expected to be priced on Wednesday, according to the person.
The offering comes at a time when the auto industry is facing a number of challenges, including a global semiconductor shortage that has caused production delays and supply chain disruptions. Ford Motor Credit is hoping to capitalize on the current market conditions and take advantage of the recent upgrade to its credit rating.
Ford Motor Credit’s History
Ford Motor Credit Co. LLC was founded in 1959 as a wholly owned subsidiary of Ford Motor Co. The company provides financing for Ford vehicles and services, as well as other products and services related to the automotive industry.
Ford Motor Credit has been a major player in the auto financing industry for decades. The company has provided financing for more than 40 million vehicles since its inception. It has also provided financing for more than $1 trillion in automotive retail contracts.
Ford Motor Credit has a long history of providing financing for Ford vehicles. The company has provided financing for more than 80 percent of all Ford vehicles sold in the United States since its inception.
Ford Motor Credit’s Recent Upgrades
Ford Motor Credit’s credit rating was upgraded to investment grade by Moody’s Investors Service in October. The upgrade was a major milestone for the company, which had been rated below investment grade since 2005.
The upgrade was based on a number of factors, including the company’s strong financial performance, its improved liquidity position, and its ability to manage its debt. The upgrade also reflects the company’s improved competitive position in the auto financing market.
The upgrade was a major boost for Ford Motor Credit, which had been struggling to regain its investment grade rating for years. The upgrade is expected to help the company access cheaper financing and reduce its borrowing costs.
Ford Motor Credit’s Bond Sale
Ford Motor Credit is now taking advantage of its upgraded credit rating by offering $1.5 billion of bonds in three parts. The bonds are being offered in three parts: a $500 million, five-year tranche; a $500 million, 10-year tranche; and a $500 million, 30-year tranche.
The bonds are expected to be priced on Wednesday, according to a person familiar with the matter. The offering is expected to be well-received by investors, given the company’s improved credit rating and its strong financial performance.
The proceeds from the bond sale will be used to refinance existing debt and for general corporate purposes. The offering is expected to help the company reduce its borrowing costs and improve its liquidity position.
Conclusion
Ford Motor Credit Co. LLC has kicked off its first bond sale since its credit rating was upgraded to investment grade by Moody’s Investors Service in October. The company is offering $1.5 billion of bonds in three parts, which are expected to be priced on Wednesday. The offering is expected to be well-received by investors, given the company’s improved credit rating and its strong financial performance. The proceeds from the bond sale will be used to refinance existing debt and for general corporate purposes. The offering is expected to help the company reduce its borrowing costs and improve its liquidity position.