Terms

Series

6.500% Notes due August 15, 2062

Liquidation Preference

$25.00

Coupon Rate

6.5%

Rate Type

Fixed

Payment Frequency

Quarterly

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

August 15, 2027

First Call Price

$100.00

Mandatory Redemption Date

August 15, 2062

Redemption Notice Period

10 days

Capital Stack Ranking

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

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

This is a debt security — not a preferred stock — issued by Ford Motor Company: $600 million of 6.500% Notes due August 15, 2062, priced at par ($25 minimum denomination), making this a retail-targeted baby bond. The Notes pay a fixed 6.500% annual interest rate quarterly on February 15, May 15, August 15, and November 15, beginning November 15, 2022. As a debt obligation, coupon payments are contractually required (not discretionary like preferred dividends), and missed payments constitute an Event of Default rather than merely a skipped distribution. The Notes are unsecured, senior obligations of Ford Motor Company (the parent holding company), ranking equally with all other unsecured and unsubordinated indebtedness of Ford. They are structurally senior to Ford's preferred and common equity. However, investors face structural subordination risk: Ford's principal operating and financing cash flows reside in subsidiaries (notably Ford Motor Credit Company), and holders of the Notes have no direct claim on subsidiary assets. There is no regulatory capital call provision, as this is an industrial issuer's debt, not a bank capital instrument. Ford may redeem the Notes at par on or after August 15, 2027 with 10–60 days' notice. At par, the Notes yield 6.500% annually, paid in four equal quarterly installments. Interest is taxed as ordinary income to U.S. holders — it does not qualify for the preferential 15%/20% qualified dividend income (QDI) rate, nor for the corporate dividends-received deduction (DRD). The record date is the 15th calendar day preceding each payment date. Because these are debt obligations, there are no dividend stopper mechanics; however, Ford must pay interest within 30 days of the due date before an Event of Default is triggered, and holders of 25%+ of principal can accelerate the full principal upon an uncured default.

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)