Shares of Ford Motor Co. F, +0.90% rallied 1.9% in premarket trading Thursday, after the auto maker said it launched a tender offer to repurchase up to $5.0 billion of higher-yielding debt. The tender offer is for debt including the 9.000% securities due April 2025 and the 9.625% securities due April 2030. In comparison, the yield on the 5-year Treasury notes closed at 1.19% on Wednesday while the 10-year Treasury yield TMUBMUSD10Y, 1.536% closed at 1.60%. Ford’s senior unsecured debt is rated Ba2 at Moody’s, which is two notches below investment-grade status. Separately, the company and its Ford Motor Credit Co. financing subsidiary introduce its sustainable financing framework, which focuses on and paying for plans in vehicle electrification and other environmental and social areas. “Winning businesses are financially healthy and lead in sustainability — it’s not a choice, they rely on each other,” said Chief Financial Officer John Lawler. The stock has soared 112.0% year to date through Wednesday, while shares of rival General Motors Co. GM, +2.60% have rallied 34.5% and the S&P 500 SPX, +0.33% has gained 24.1%.
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