Ford 2014 Annual Report Download - page 152

FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 13. DEBT AND COMMITMENTS (Continued)
DOE ATVM Incentive Program
In September 2009, we entered into a Loan Arrangement and Reimbursement Agreement with the DOE, under which
we borrowed through multiple draws $5.9 billion to finance certain costs for fuel-efficient, advanced-technology vehicles.
At December 31, 2014, an aggregate $4.4 billion was outstanding. The principal amount of the ATVM loan bears interest
at a blended rate based on the U.S. Treasury yield curve at the time each draw was made (with the weighted-average
interest rate on all such draws being about 2.3% per annum). The ATVM loan is repayable in equal quarterly installments
of $148 million, which began in September 2012 and will end in June 2022.
EIB Credit Facilities
On December 21, 2009, Ford Romania, our operating subsidiary in Romania, entered into a credit facility for an
aggregate amount of €400 million (equivalent to $486 million at December 31, 2014) with the EIB (the “EIB Romania
Facility”), and on July 12, 2010, Ford Motor Company Limited, our operating subsidiary in the United Kingdom, entered
into a credit facility for an aggregate amount of £450 million (equivalent to $701 million at December 31, 2014) with the
EIB (the “EIB United Kingdom Facility”). The facilities were fully drawn at December 31, 2014. Loans under the EIB
Romania Facility and the EIB United Kingdom Facility bear interest at a fixed rate of 4.44% and 4% per annum,
respectively, and mature on March 31, 2015 and September 11, 2015, respectively.
Automotive Credit Facilities
Lenders under our Second Amended and Restated Credit Agreement dated as of April 30, 2014 (the “revolving credit
facility”) have commitments to us totaling $12.2 billion, with about $9 billion maturing on April 30, 2019 and about $3 billion
maturing on April 30, 2017. We have allocated $2 billion of commitments to Ford Credit on an irrevocable and exclusive
basis to support its liquidity. Any borrowings by Ford Credit under the revolving credit facility would be guaranteed by us.
The revolving credit facility is unsecured and free of material adverse change conditions to borrowing, restrictive
financial covenants (for example, interest or fixed charge coverage ratio, debt-to-equity ratio, and minimum net worth
requirements), and credit rating triggers that could limit our ability to obtain funding. The revolving credit facility contains a
liquidity covenant that requires us to maintain a minimum of $4 billion in aggregate of domestic cash, cash equivalents,
and loaned and marketable securities and/or availability under the revolving credit facility. If our senior, unsecured,
debt does not maintain at least two investment grade ratings from Fitch, Moody’s, and S&P, the guarantees of
certain subsidiaries will be required.
At December 31, 2014, the utilized portion of the revolving credit facility was $58 million, representing amounts
utilized as letters of credit.
At December 31, 2014, we had $822 million of local credit facilities available to non-U.S. Automotive affiliates, of
which $175 million had been utilized.
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