DEARBORN, Mich., June 29 /CNW/ -- Canadian Road Leasing Company, a wholly
owned subsidiary of Ford Credit Canada Limited, completed a lease
securitization transaction on June 24 and received proceeds of USD $1.3
billion. A portion of the proceeds will be held in a reserve fund for the
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 USD $1.3 billion from a third-party private investor.
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. 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 USD $1.3 billion, reducing over the term of the lease securitization
Canadian Road will distribute the immediately available proceeds to Ford
Credit Canada as a return of capital. Ford Credit Canada will use the
immediately available proceeds to repay indebtedness owing to Ford Credit
International, Inc. Ford Credit Canada is an indirect, wholly owned
subsidiary of 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 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 Web Site: http://www.fordcredit.com