Press release
DEARBORN, Mich., April 15, 2009 - 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.
photo:Ford
DEARBORN, Mich., April 15, 2009 - 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.
photo:Ford