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Ford To Adjust Conversion Prices On Convertible Debt Securities And Exercise Price And Number Of Underlying Shares Of Warrants

Stocks in this article: F

DEARBORN, Mich., July 31, 2012 /PRNewswire/ --

  • Ford's quarterly dividends totaling $0.15 per share ( 5 cents per share in each of the first three quarters of 2012) on common stock trigger conversion and exercise price adjustments 
  • Conversion and exercise price adjustments are being made pursuant to the terms of convertible debt securities and warrants
  • Adjustments offset dilutive impact of common stock dividends on holders of convertible debt securities and warrants

Ford Motor Company (NYSE: F) announced that, as a result of dividends totaling $0.15 per share ( $0.05 per share in each of the first three quarters of 2012) paid and to be paid on its common stock, par value $0.01 per share ("Ford common stock"), it will adjust the conversion prices for its two outstanding convertible debt securities, which are convertible into Ford common stock, and the exercise price and number of underlying shares with respect to its outstanding warrants to purchase Ford common stock.  The adjustments described below will be made in accordance with the terms of the impacted securities and are intended to offset the dilutive impact of such dividend payments on the holders of the convertible debt securities and warrants.

4.25% Senior Convertible Notes Due November 15, 2016

Ford's 4.25% Senior Convertible Notes due November 15, 2016 (the "2016 Notes") (CUSIP Number 345370 CN8) were issued on November 9, 2009 and $882,743,000 aggregate principal amount remains outstanding.  Effective August 1, 2012, the initial conversion rate for the 2016 Notes of 107.5269 shares of Ford common stock for each $1,000 in principal amount of the 2016 Notes (equivalent to a conversion price of $9.30 per share of Ford common stock) will be adjusted to 109.3202 shares for each $1,000 in principal amount of 2016 Notes (equivalent to a conversion price of approximately $9.15 per share of Ford common stock).

4.25% Senior Convertible Notes Due 2036

Ford's 4.25% Senior Convertible Notes due 2036 (the "2036 Notes") (CUSIP Number 345370 CF5) were issued on December 15, 2006 and $24,996,000 aggregate principal amount remains outstanding.  Effective August 6, 2012, the initial conversion rate for the 2036 Notes of 108.6957 shares of Ford common stock for each $1,000 in principal amount of the 2036 Notes (equivalent to a conversion price of $9.20 per share of Ford common stock) will be adjusted to 110.5085 shares for each $1,000 in principal amount of 2036 Notes (equivalent to a conversion price of approximately $9.05 per share of Ford common stock).

Warrants to Purchase One Share of Ford Common Stock

Ford's Warrants to purchase Ford common stock (NYSE: F WS) (CUSIP Number 345370 134)  ("Warrants") were issued on December 11, 2009 and 362,261,527 Warrants remain outstanding.  Effective August 6, 2012, (i) the exercise price of $9.20 per share at which each Warrant is exercisable to purchase Ford common stock will be adjusted to $9.05 and (ii) the number of shares for which each Warrant is exercisable will also be adjusted to 1.0167.  As a result of these adjustments, effective August 6, 2012, each Warrant will represent the right to purchase 1.0167 shares of Ford common stock at an exercise price of $9.05.

About Ford Motor Company Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 168,000 employees and about 65 plants worldwide, the company's automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com .

Follow at www.facebook.com/ford , www.twitter.com/ford or www.youtube.com/fordvideo1

SOURCE Ford Motor Company

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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