Ford Motor Company Strengthens Liquidity with Renewed Credit Facilities Totaling $18 Billion

Ford Motor Company has entered into new amendments to its existing syndicated credit agreements, enhancing its financial flexibility with over $18 billion in total available credit across multiple facilities. The latest amendments extend maturities and update terms without altering the overall commitment size.

Updated Credit Facility Structure
Main Credit Agreement:
Ford now holds $3.4 billion in commitments maturing in 2028 and $10.1 billion maturing in 2030, simplifying and consolidating prior maturities that spanned from 2026 to 2029.

Supplemental Revolving Credit Agreement:
Maintains a $2.0 billion commitment, now extended to mature in 2028.

364-Day Revolving Credit Agreement:
Totaling $2.5 billion, this facility’s maturity has been extended by one year to 2026.

All facilities remain unsecured and fully guaranteed by Ford, and none contain material adverse change clauses or credit rating-based borrowing triggers, ensuring reliable access to liquidity even during potential market stress.

Sustainability-Linked Loan Structure
Interest rates under these agreements are primarily tied to market benchmarks such as Daily Simple SOFR, with margins that may adjust based on Ford’s performance against pre-defined sustainability metrics:

Greenhouse gas emissions from global manufacturing

Use of carbon-free electricity

Tailpipe CO₂ emissions in Ford’s European vehicle portfolio

This structure incentivizes continued progress in Ford’s environmental initiatives while reducing financing costs when goals are met.

Covenants and Liquidity Safeguards
The updated agreements include:

A $4 billion minimum liquidity covenant, requiring Ford to maintain a mix of cash, cash equivalents, marketable securities, and available credit.

Standard affirmative and negative covenants, including requirements to deliver financial statements and limits on mergers, liens, and sale-leasebacks.

Provisions ensuring continued access even in the absence of two investment-grade credit ratings, provided certain subsidiaries maintain guarantees.

These amendments provide Ford with a robust liquidity buffer to support operations, investments, and working capital needs as it continues executing its strategy across electric vehicles, global manufacturing, and next-generation technology platforms.