Michigan-based auto-maker, Ford Motor, is seeking to redeem $2.98 billion in convertible notes in March, Bloomberg reports. The company’s outstanding 6.5% cumulative convertible trust preferred securities of Ford Motor Company Capital Trust II will be redeemed for cash.The conversion, which will result in a first-quarter cost of as much as $60 million, will reduce the company’s annual interest expenses by about $190 million. The company’s holders will be allowed to convert their notes into shares at a rate of 2.877 shares per trust security. Ford, which reduced its debt by $14.5 billion in 2010, had around $20.5 billion in automotive cash as of the end of 2010.
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