Ford Motor Credit extends, increases exchange of 15 series of notes for new notes, cash

By Jennifer Chiou

New York, May 15 - Ford Motor Credit Co. announced an increase to its exchange offer for 15 series of its notes as well as an extension of the expiration date to 7 a.m. ET on May 31 from midnight ET on May 30.

The company said it will now issue a new series of up to $1.5 billion, up from $1 billion, of fixed-rate notes due Sept. 15, 2010, up to $1 billion of floating-rate notes due June 15, 2011 - unchanged - and up to $1.3 billion of cash in the offer, increased from $1 billion.

In order of priority for acceptance, the company said that as of the early deadline of 5 p.m. ET on May 12, it received tenders from holders of:

• all $225 million of its floating-rate notes due Oct. 29;

• $391 million of its $800 million of floating-rate notes due Nov. 16, 2006;

• $1.686 billion of its $4 billion of 6½% notes due Jan. 25, 2007;

• $39 million of its $500 million of 7¾% notes due Feb. 15, 2007;

• $74 million of its $300 million of floating-rate notes due March 13, 2007;

• $130 million of its $750 million of floating-rate notes due March 21, 2007;

• $71 million of its $1 billion of 7.2% notes due June 15, 2007;

• $402 million of its $1.4 billion of floating-rate notes due Sept. 28, 2007;

• $270 million of its $500 million of floating-rate notes due Nov. 2, 2007;

• $197 million of its $1 billion of 4.95% notes due Jan. 15, 2008;

• $383 million of its $1.5 billion of 6 5/8% notes due June 16, 2008;

• $43 million of its $300 million of 6¾% notes due Aug. 15, 2008;

• $144 million of its $1 billion of 5 5/8% notes due Oct. 1, 2008;

• $41 million of its $300 million of 6 3/8% notes due Nov. 5, 2008; and

• $372 million of its 2.8 billion of 5.8% notes due Jan. 12, 2009.

The company will issue new notes and cash equal to the exchange price for each existing series of notes. Those who tendered securities before the early deadline will also receive an early participation payment.

June 5 is the intended settlement date for the offer that began on May 2.

Ford Motor Credit said the offers are conditioned upon the receipt of tenders for at least $500 million of the new fixed-rate notes and at least $500 million of the new floating-rate notes.

The company said it is aiming to lengthen its debt maturities and reduce overall debt levels.

Global Bondholder Services Corp. is the information agent (866 470-4200 or call collect 212 430-3774).

Based in Dearborn, Mich., Ford Motor Credit is the automotive and mortgage lending subsidiary of Ford Motor Co.

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