Ford Motor Co. F, -3.83% announced Tuesday plans to offer $2 billion in convertible senior notes due 2026, in a private placement to qualified institutional buyers. The automobile maker’s stock fell 0.8% in premarket trading. The notes will be converted to cash, Ford stock or a combination of both, at Ford’s election. The initial conversion rate of the notes have not yet been determined.
Separately, Ford affirmed its 2021 financial guidance, but said results for the year could be negatively impacted if the current semiconductor shortage extends through the first half of the year. Ford’s stock has run up 46.0% over the past three months through Monday, while shares of rival General Motors Co. GM, -1.21% have climbed 39.9% and the S&P 500 SPX, 0.13% has gained 7.2%.