Terms

Series

6.000% Notes due December 1, 2059

Liquidation Preference

$25.00

Coupon Rate

6%

Rate Type

Fixed

Annual Dividend

$1.50

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

December 1, 2024

First Call Price

$25.00

Mandatory Redemption Date

December 1, 2059

Redemption Notice Period

30 days

Capital Stack Ranking

Pari Passu With: Other Unsecured And Unsubordinated Indebtedness Of Ford Motor Company; Senior To: Preferred Stock, Common Stock, Class B Stock

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

Ford Motor Company is offering $800 million in aggregate principal amount of 6.000% Notes due December 1, 2059 — a long-dated, fixed-rate debt security issued in $25 minimum denominations and targeted at retail and institutional investors. Interest is paid at a fixed annual rate of 6.000% ($1.50 per $25 note per year, or $0.375 per quarter). As a debt obligation, these Notes are not preferred stock and are not subject to discretionary dividend deferral; interest is a contractual obligation, making non-payment a default event rather than a deferrable dividend. The Notes are senior unsecured obligations of Ford Motor Company (the parent holding company), ranking equally with all other unsecured and unsubordinated indebtedness of Ford. They sit above preferred stock, common stock, and Class B stock in the capital structure, but there is no secured debt carve-out or structural subordination concern explicitly noted beyond the general lien limitation covenant. There is no regulatory capital call provision, as this is an industrial corporate issuer rather than a bank. The Notes mature December 1, 2059, with a callable window opening December 1, 2024 at par (100% of principal plus accrued interest), on 30–60 days' notice. At the $25 issue price, the Notes yield 6.000% annually, paid quarterly on March 1, June 1, September 1, and December 1, commencing March 1, 2020. The record date falls on the 15th day preceding each payment date. Interest is treated as ordinary income for U.S. federal income tax purposes — it does not qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD). There are no dividend stopper mechanics; as a debt instrument, failure to pay interest constitutes an Event of Default, giving noteholders acceleration rights after applicable grace periods.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Other Preferreds from Ford Motor Company

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 57 (Average)