Financing Our Plan and Improving Our Balance Sheet

To deliver on our new product plans, our sustainability efforts and our plans to remain profitable, we have to continue to improve our balance sheet. Since the beginning of 2009, we have made substantial progress in our plans to provide additional liquidity and improve our balance sheet. These accomplishments include the following:

• On April 6, 2010, paid down $3 billion of the drawn amount of the 2013 revolving credit facility. This payment has reduced Automotive gross cash and debt by $3 billion, which will be reflected on Ford's second-quarter 2010 balance sheet. The action did not affect Automotive liquidity, as the repaid amounts remain available for borrowing.
• Negotiated with the UAW to amend the VEBA agreement to provide the option of paying up to approximately 50 percent of our VEBA obligations in Ford Common Stock, and to smooth payments over the 13-year payment term.
• Reduced Automotive debt by $10.1 billion principal amount, utilizing $2.6 billion in Automotive and Ford Credit cash and 468 million shares of Ford Common Stock, through a number of separate but related transactions, including a cash tender offer to repurchase outstanding debt securities, a cash tender offer to repurchase certain secured term loan debt, and an induced conversion offer with respect to our convertible debt securities maturing 2036.
• Raised $1.6 billion of equity in an underwritten public offering of Ford Common Stock. Raised $565 million with the completion of an equity distribution program begun in 2008, pursuant to which shares of Ford Common Stock were issued over time in market transactions.
• Entered into a U.S. Department of Energy (DOE) loan agreement to provide us up to $5.9 billion in loans, at interest rates generally equivalent to a 10-year U.S. Treasury rate, under the DOE's Advanced Technology Vehicles Manufacturing Incentive Program.
• Issued $2.875 billion of 4.25 percent Senior Convertible Notes due 2016.
• Amended and extended the revolving credit facility under our secured Credit Agreement – reducing the amount of the revolving credit facility from $10.7 billion to $8.1 billion, extending the maturity date of $7.2 billion of that amount from December 2011 to November 2013, and establishing a new term loan in the amount of $724 million maturing in December 2013.
• Registered an additional $1 billion equity distribution program in November 2009 and commenced sales thereunder in December 2009 with issuances totaling about $470 million through March 2010.
• Completed the UAW VEBA transaction on December 31, 2009, by transferring assets, consisting of cash and marketable securities, notes and warrants valued at $14.8 billion, to the UAW VEBA Trust, thereby discharging our $13.6 billion of UAW retiree health care obligations.
• Secured a £360 million-pound loan guarantee commitment in Britain from the European Investment Bank in 2010 to support Ford's investment of £1.5 billion pounds in its four UK facilities over the next five years.
• Returned capital from Ford Credit consistent with its plan for a smaller balance sheet and focus on core Ford brands.