Ford Bumps Up Financing

The company increases the size of a revolving credit line and reportedly boosts its convertible note offering.
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Ford Motor

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will increase its new financing package beyond the $18 billion the automaker originally planned.

In a Securities & Exchange Commission filing Wednesday, Ford said it is increasing its revolving credit facility to an estimated $10.5 billion to $11.5 billion due to "overwhelming support" by lenders.

Last week, Ford unveiled plans for an

$18 billion financing package that included an $8 billion revolving credit facility, as well as a $7 billion term loan and $3 billion in convertible note sales.

In addition to the higher credit line, several media outlets reported Wednesday that Ford plans to upsize its convertible note offering by 50% to $4.5 billion. Such a move would bring its planned financing package to $22 billion to $23 billion.

Ford is seeking the added financing to give its struggling operations a better cash cushion. The No. 2 U.S. automaker put up virtually all of its plants and domestic automotive assets as collateral, marking the first time the company has turned to asset-backed loans.

Ford said in Wednesday's filing that it must also pledge its investment in Mazda Motor as additional collateral for all secured debt.

Shares of Ford recently were down 18 cents, or 2.3%, to $7.50.