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.
