Ford To Raise $3.3 Billion In Stock, Debt Sales

DEARBORN, Mich. (AP) — Ford Motor Co. said Monday it will ask its lenders for extra time to repay at least some of the $10.1 billion borrowed under a line of credit, and will sell about $3.3 billion in stock and convertible debt to raise more cash.

Ford President and CEO Alan Mulally said that over time the moves will "reduce the company's debt burden, providing an additional cushion given the still uncertain state of the economy." The news came after Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, reported a surprise quarterly profit of nearly $1 billion and said it will be profitable by 2011.

Ford said it will pay down 25 percent of the revolving credit line and is offering higher interest and fees on its remaining debt if lenders would agree to push back the date the credit line is due by two years to Nov. 30, 2013.

In a filing with the Securities and Exchange Commission earlier this year, Ford listed borrowings under its secured revolving loan due in 2011 at about $10.1 billion and said the loan bears interest at 2.25 percent above the London interbank offered rate. It had borrowed the $10.1 billion on Feb. 3, "due to concerns about the instability in the capital markets and the uncertain state of the global economy," Ford said in the Aug. 5 filing.