JOIN USFord also said it expects to grant to the underwriters — Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley — a 30-day option to buy up to 45 million shares of common stock. Ford is the only US automaker that has not sought government aid. Ford’s stock offering comes on the heels of a successful debt exchange. Ford shares have had a four-fold rise in price since hitting a low of $1.50 on February 20.
Ford said net proceeds from the stock offering would also be used for general corporate purposes. “Today’s equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet,” said Ford CEO Alan Mulally in a statement.
Ford is trying to raise capital to fund the Voluntary Employee Beneficiary Association (VEBA), a union-run fund set up for retiree healthcare expenses. Ford restructured payments into the VEBA, including the option to contribute about half in company stock, to conserve cash.