Ford Motor Co. disclosed that it has moved $13.2 billion in debt notes and cash into a UAW-administered retiree health care trust in order to transfer that liability to the union.
So far, this and other similar transactions have added about $7 billion in debt to the carmaker's balance sheets. Ford also said that included in the asset transfer are a $1.4 billion scheduled payment on a $6.7 billion note and a prepayment of $500 million on that note.
Furthermore, Ford paid $610 million in cash on a separate $6.5 billion note. Ford had also transferred $620 million from a temporary asset account that had been set up previously to fund the new voluntary employees' beneficiary association.
Ford also transferred warrants to purchase 362 million shares of Ford common stock to the VEBA at a price of $9.20.
Notably, with Ford shares closing at upwards of $10, those warrants are in-the-money. This means that the UAW fund could opt to exercise the warrant at any time, according to Ford spokesman Mark Truby.
The last element of the asset transfer was a $3.5 billion internal VEBA fund that had been accumulated through the years.