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Ford Offers to Exchange New Debt for Outstanding Debt

29 April 1998

Ford Offers to Exchange New Debt for $1.85 Billion of Outstanding Debt

    DEARBORN, Mich., April 29 -- Ford Motor Company
today announced that it and its wholly-owned subsidiary, Ford Holdings, Inc.,
will offer to exchange new longer-maturity debentures for the following
outstanding debentures:

    *  Ford's $700 million aggregate principal amount 8 7/8% Debentures due
       January 15, 2022;

    *  Ford's $300 million aggregate principal amount 9.95% Debentures due
       February 15, 2032;

    *  Ford's $350 million aggregate principal amount 9 1/2% Debentures due
       September 15, 2011; and

    *  Ford Holdings' $500 million aggregate principal amount 9 3/8%
       Guaranteed Debentures due March 1, 2020.

    The new debentures exchanged for the existing debentures maturing in 2022,
2011 and 2020 will have maturity dates that are ten years beyond the maturity
date of the existing debentures.  The new debentures exchanged for the
existing debentures maturing in 2032 will have a maturity date that is 15
years beyond the maturity date of the existing debentures.
    By exchanging a portion of their long-term debt portfolios for new longer-
maturity debt, Ford and Ford Holdings can take advantage of currently
available interest rates.
    The exchange offers expire on May 28, 1998, unless extended by Ford.
    At March 31, 1998, Ford had $7.4 billion and Ford Holdings had $1.0
billion of long-term debt outstanding.
    Holders of the above-listed debentures may call Georgeson & Company Inc.
at 800-223-2064 or Deutsche Morgan Grenfell Inc. at 212-469-7512 (call
collect) for further details about the offer.

SOURCE  Ford Motor Company