Ford to buy back up to 116 million shares to offset dilution

Article by Christian A., on May 9, 2014

Ford Motor Co. has disclosed a $1.8-billion stock repurchase program that covers up to 116 million shares to offset possible share dilution and to position the company to cut its automotive debt by $883 million At the of the first quarter of 2014, Ford had around $15.7 billion in automotive debt. It has disclosed plans cut the figure to around $10 billion by mid-decade.

A repurchase of 103 million shares will counter dilutive effect of potential conversions of Ford’s 4.25 percent senior convertible notes that are due November 15, 2016. With the closing stock price of $15.46 per share on May 7, 2014, those 103 million shares would have a value of around $1.6 billion.

Another repurchase of 12.6 million shares will offset the dilutive effect of share-based incentive pay for around 26,000 salaried employees for 2014 – amounting to almost $195 million at Wednesday's closing stock price.

Ford CFO Bob Shanks remarked that two repurchase moves will reduce the carmaker’s diluted shares by around 3 percent.

Ford can terminate the noteholders' conversion rights starting November 20, 2014, and the carmaker has the right to settle conversions with shares, cash or both. The repurchase program will also offset dilutive effect of shares Ford will issue to settle those conversions.

Topics: ford, shares

If you liked the article, share on:

Comments

Recommended

A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries