Ford selling stock to pay debt

AFP, October, 2008

DETROIT, Michigan (AFP) — Ford Motor Co. said Friday it is selling 500 million dollars in stock to retire short-term debt owed by Ford Motor Credit.

"It's a debt for equity swap," Ford spokesman Bill Collins told AFP.

"We're issuing new shares. We're going to take the proceeds and use them to retire some short-term debt for Ford Motor Credit."

The transaction will reduce the company's outstanding debt which "strengthens our consolidated balance sheet."

"We also did this back in August when Goldman Sachs sold 500 million dollars in equity that was used to retire short term debt."

Ford Motor Credit Company LLC, which offers loans to consumers and dealers, is a wholly-owned subsidiary of the Ford Motor Co.

Ford Credit lost 1.43 billion...