Ford to Offer $2 Billion in Bonds; May Refinance High-Interest Debt From 2020

Ford Motor Company (NYSE: F), which sold high-interest junk bonds in the early days of the pandemic in a rush to raise cash, said that it will now offer $2 billion in new bonds in what may be a bid to refinance some of that high-interest debt.

Ford said on Tuesday that it will offer $2 million in new bonds via a private placement to institutional investors. The bonds are unsecured, meaning that Ford will not post collateral, and convertible, meaning that they can be converted into Ford common stock at a price that will be determined before they're issued.

Ford's world headquarters in Dearborn, Michigan. Image source: Ford Motor Company.

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Source Fool.com