(Reuters) – Ford Motor Co (F.N) on Friday raised $8 billion from corporate debt investors to shore up its cash reserves as the coronavirus outbreak pummeled vehicle sales and production, resulting in an estimated loss of about $2 billion for the first quarter.
FILE PHOTO: FILE PHOTO: The front grill logo of a Ford pickup truck is seen in this photo taken in Carlsbad, California November 5, 2014 REUTERS/Mike Blake
The Dearborn, Michigan-based company, which lost its investment-grade status in March, raised new funds with a three-part debt offering, according to a regulatory filing.
Investors said Ford benefited from the U.S. Federal Reserve’s move last week to backstop debt offerings by companies that lost investment-grade credit ratings after the COVID-19 crisis accelerated in the United States, International Financing Review reported on Friday.
In an environment where interest rates on cash savings are close to zero, Ford will pay investors interest of between 8.50% and 9.625