F FORD MOTOR CO
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Executive Summary
Ford closed the JVDA restructuring with SK On, exiting its BlueOval SK JV and acquiring two Kentucky battery plants via subsidiary FEB. Ford assumed a $3.805B DOE loan (4.814% fixed, maturing 2040) from BOSK, was released from its 50% guarantee on the larger BOSK DOE loan, and terminated its $6.6B capital commitment to the JV. The transaction adds secured debt but eliminates a large contingent liability and future cash outflows, a net credit-positive for Ford's balance sheet.
Actionable Insight
This is a structurally positive deleveraging event for Ford — it caps EV battery exposure at the two Kentucky plants and removes the open-ended JV capital commitment. The preferred stock (F-PD) benefits from improved credit coverage and reduced contingent liability. Monitor Ford's Q2 2026 10-Q for the impact on consolidated debt and liquidity metrics; the $4.0B liquidity floor is non-binding given Ford's typical cash position.
Key Facts
- Ford assumed a $3,805,040,000 DOE loan at 4.814% interest, maturing July 15, 2040, with interest-only payments through Jan 15, 2030.
- Ford was released from its 50% guarantee of BOSK's $9.63B DOE loan under the SSA.
- Ford's requirement to contribute up to $6.6 billion in capital to BOSK over five years was terminated.
- Ford's membership interest in BOSK was redeemed; SK On now owns 100% of BOSK.
- Ford subsidiary FEB acquired BOSK's interests in two Kentucky battery plants, subject to existing DOE liens.
- The loan agreement includes a liquidity covenant requiring Available Liquidity ≥ $4.0B, matching Ford's existing credit agreement.
- Cross-default triggers at $1.0B of other indebtedness; cross-acceleration at $1.0B.
- The loan is secured by the Kentucky battery plant assets (fee and leasehold mortgages).
Financial Impact
Ford assumed $3.805B in secured debt at 4.814% fixed rate, but eliminated a $6.6B capital commitment and a contingent guarantee on up to ~$4.8B of BOSK debt. Net reduction in maximum potential cash outflow of ~$7.6B.
Risk Factors
- Ford now directly owns and operates battery plants, exposing it to operational and technology risks previously shared with SK On.
- The DOE loan is secured by the Kentucky facilities, creating a priority lien that could complicate future asset-level financing.
- If EV demand disappoints, Ford bears 100% of the downside on these plants rather than 50%.
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000037996-26-000093 |
| Document: f-20260520.htm | 0000037996-26-000093 |
| Document: 0000037996-26-000093-index-headers.html | 0000037996-26-000093 |
| Document: 0000037996-26-000093-index.html | 0000037996-26-000093 |
| Document: 0000037996-26-000093.txt | 0000037996-26-000093 |
Track record builds as more directional reports settle.
Filters
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May 22, 2026
22d ago
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Court Ruling
| $14.92 $16.63 | ▼ −11.48% | ▼ −9.81% | $14.84 (+0.52%) |
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May 21, 2026
23d ago
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8-K
| — | awaiting T+5 | — | — |
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Apr 15, 2026
8w ago
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8-K
| — | awaiting T+5 | — | — |
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Apr 15, 2026
8w ago
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8-K
| — | awaiting T+5 | — | — |
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Apr 2, 2026
10w ago
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8-K
| — | awaiting T+5 | — | — |
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Mar 27, 2026
11w ago
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DEFA14A
| — | awaiting T+5 | — | — |
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Feb 28, 2026
15w ago
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Institutional Cluster
| $13.37 $12.17 | ▼ −8.98% | ▼ −7.77% | $14.84 (+11.02%) |
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