DEARBORN, Mich., April 15 /CNW/ -- Canadian Road Leasing Company, a
wholly owned subsidiary of Ford Credit Canada, today completed a lease
securitization transaction, receiving proceeds of $0.6 billion (Canadian). A
portion of the proceeds will be held in a reserve fund for the transaction.
This lease securitization transaction included the lease of a portfolio
of vehicles (subject to the existing retail leases) by Canadian Road to a
special purpose trust and a one-time lease prepayment by the special purpose
trust to Canadian Road. The lease prepayment was financed by the trust
through borrowings of $0.6 billion (Canadian) from a third party.
Under the lease securitization transaction, Canadian Road will continue
to own the vehicles that are the subject of such transaction and will be
responsible for servicing the existing retail leases of such vehicles.
Both Canadian Road and the special purpose trust will be consolidated
with Ford Credit Canada for accounting purposes. Ford Credit Canada is an
indirect wholly owned subsidiary of Ford Motor Credit Company.
As a consequence of such consolidation, the third-party indebtedness
incurred by the special purpose trust with respect to the lease securitization
transaction will be reflected on the consolidated financial statements of Ford
Credit Canada as a liability of $0.6 billion (Canadian), reducing over the
term of the lease securitization transaction.
Canadian Road will lend the immediately available proceeds to Ford Credit
Canada. Ford Credit Canada will use the immediately available proceeds to
repay indebtedness owing to Ford Motor Credit Company.
Ford Motor Credit Company LLC is one of the world's largest automotive
finance companies and has supported the sale of Ford products since 1959.
Ford Motor Credit is an indirect wholly owned subsidiary of Ford Motor
Company. It provides automotive financing for Ford, Lincoln, Mercury and Volvo
dealers and customers. More information can be found at
http://www.fordcredit.com and at Ford Motor Credit's investor center,
For further information:
For further information: Media, Margaret Mellott, +1-313-322-5393,
email@example.com; or Fixed Income Investment Community, David Dickenson,
+1-313-621-0881, firstname.lastname@example.org, both for Ford Motor Credit Company LLC Web