Ford Cuts Debt By $9.9B On Tender Offers,Cuts Interest Costs

[Onkel Neal]

http://online.wsj.com/article/BT-CO-20090406-708248.html

Ford Motor Co. (F) said a refinancing would cut $9.9 billion from its debt in a move that stokes pressure on rival General Motors Corp. (GM) to secure a deal with its creditors.
The cash and equity offer launched by Ford last month received a better-than-expected reception from its creditors, cutting an annualized $500 million in interest expenses.
Ford and its rivals are still struggling under the weight of falling global auto sales, and the move will help the company's stated aim of avoiding any resort to U.S. government aid.
The company has managed to take advantage of efforts by GM and Chrysler LLC (C.XX) to reach deals with their stakeholders to secure further U.S. support.
Ford has already reached a deal with unions to restructure commitments to a union-run health-care plan.
"Ford is upstaging GM with what its doing, said Pete Hastings, senior analyst at Morgan Keegan. "It's handling things more smoothly than GM and accomplishing what it needs to do without the government getting involved.

My Ford stock is up to $3.50+