Ford Motor Company (NYSE:F) is seeking a line of credit expansion that totals $12 billion. The line of credit will consist of a $9 billion revolving loan for a five year term, which can be borrowed again when it is repaid.
It is going to be augmented by a $3 billion financing pact that is set to expire within three years of issuance.
Ford may pay 1.5 percentage points for the lion expansion, which is more than the 3-month LIBOR rate on both items that is meant to replace a $10.7 billion credit line expiring in 2017. JPMorgan Chase is providing the funding for the line.