Ford Motor Co. Surpasses AT&T as Biggest Bond Deal Issuer

Strategic Insights -

Ford Motor Co.'s record-breaking bond offering of $8.6 billion has eclipsed AT&T Corp.'s $8 billion deal in less than four months. The deal, led by global coordinator Bear Stearns & Co. and co-managers Merrill Lynch & Co. and Salomon Smith Barney, saw participation from over 400 investors and about 25% of international buyers. This bond issuance is the first under Ford's Global Landmark Securities (GlobLS) program, which aims to issue landmark securities two to four times a year, each with a minimum size of $3 billion. The company still has $3.2 billion left to issue for the remainder of the year.

Key Takeaways:

  • Ford Motor Co. has surpassed AT&T Corp. as the issuer of the biggest bond deal, with a $8.6 billion offering.
  • The bond deal involved participation from over 400 investors and about 25% of international buyers.
  • The deal is part of Ford's Global Landmark Securities (GlobLS) program, which aims to issue landmark securities two to four times a year, each with a minimum size of $3 billion.
  • Ford Motor Credit has exercised about two-thirds of its planned $10 billion in issuance for the year.
  • The company still has $3.2 billion left to issue for the remainder of the year.
  • Minute Maid's $50 million investment in redesigning a Coca-Cola facility in southern France is expected to take about a year.
  • Nova Corp.'s shareholder rights plan involves a 10% trigger and allows shareholders to purchase additional shares at 20% of the market price.
  • Grimes Publications has acquired the Coweta Journal from Community Press Inc. for undisclosed terms.
  • National Service Industries Inc. has completed its waiting period under the Hart-Scott-Rodino Antitrust Act and is proceeding with its acquisition of Holophane Corp.

Statistics:

  • $8.6 billion: The size of Ford Motor Co.'s record-breaking bond offering.
  • 400: The number of investors participating in the bond deal.
  • 25%: The proportion of international buyers participating in the deal.
  • $10 billion: The total planned issuance by Ford Motor Credit for the year, with $3.2 billion left to issue.
  • $50 million: The amount invested by Minute Maid to redesign a Coca-Cola facility in southern France.
  • 10%: The trigger for Nova Corp.'s shareholder rights plan.
  • 20%: The market price multiplier for the exercise price of the rights.

Sources:

  • "Ford Motor Co. Stages Coup with Record $8.6 Billion Bond Deal"
  • "Minute Maid Plans $50 Million Investment in European Juice Business"
  • "Nova Corp. Approves Shareholder Rights Plan"
  • "Grimes Publications Acquires Coweta Journal"
  • "National Service Industries Seeks to Complete Holophane Acquisition"