Ford Motor Co. F,
announced plans on Tuesday to offer $ 2 billion in senior convertible notes due in 2026, in a private placement for qualified institutional buyers. The automaker’s shares fell 0.8% in the pre-market. The notes will be converted into cash, Ford shares or a combination of both, in Ford’s election. The initial conversion rate for banknotes has not yet been determined. Separately, Ford affirmed its financial guidance for 2021, but said the year’s results could be negatively impacted if the current semiconductor scarcity extends into the first half of the year. Ford’s shares were up 46.0% in the last three months through Monday, while the shares of rival General Motors Co. GM,
rose 39.9% and the S&P 500 SPX,
gained 7.2%.
