Ford issues $8 billion debt securities after virus causes $2 billion loss

Ford issues $8 billion debt securities after virus causes $2 billion loss

Ford Motor Co 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.. 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 US 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.". Today's deal is a good sign of the growing confidence around the improving market backdrop with respect to liquidity as well as more promising views around the economic outlook," said Dan Mead, head of investment grade syndicate at Bank of America Securities, which was one of the lead banks on the Ford deal.. 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% on the new debt securities.. There was around $40 billion worth of demand from investors across the three debt packages, according to