SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 8, 1997
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FORD MOTOR CREDIT COMPANY
(Exact name of registrant as specified in its charter)
Delaware 1-6368 38-1612444
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(State or other juris- (Commission File Number) (IRS Employer
diction of incorporation Identification No.)
The American Road, Dearborn, Michigan 48121
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-322-3000
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ITEM 5. Other Events.
Ford Motor Company News release dated Ocrober 8, 1997, filed
as Exhibit 99 to this Current Report on Form 8-K, is incorporated
by reference herein.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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EXHIBITS
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Designation Description Method of Filing
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Exhibit 99 News release dated Filed with this Report
October 8, 1997
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on the date indicated.
FORD MOTOR CREDIT COMPANY
(Registrant)
Date: October 9, 1997 By:/s/R. P. Conrad
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R. P. Conrad
Assistant Secretary
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EXHIBIT INDEX
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DESIGNATION DESCRIPTION
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Exhibit 99 News release dated
October 8, 1997
News EXHIBIT 99
Global News, Ford Motor Company, Public Affairs,
The American Road, Dearborn, MI 48121
Telephone: 1-313-322-9600; Fax: 1-313-845-0570
E-Mail: usfmdzyg @ IBMMAIL: Internet: http://media.ford.com
Contact: Mel Stephens Mike Holland Pam Kueber
1-313-323-8220 1-313-323-8221 1-313-322-9600
IMMEDIATE RELEASE
FORD PLANS TO SPIN OFF ITS 80.7 PERCENT STAKE
IN THE ASSOCIATES TO FORD SHAREHOLDERS
DEARBORN, Mich., October 8, 1997 -- Ford Motor Company [NYSE: F] plans to
spin off its 80.7 percent interest in Associates First Capital Corporation
[NYSE: AFS] to Ford common and Class B shareholders. The spin-off would be
accomplished by Ford distributing to its shareholders its 279.5 million shares
of common stock of The Associates, presently valued at about $18 billion or $15
per Ford share.
Ford purchased The Associates in 1989 for $3.35 billion. A 19.3 percent
interest in The Associates was sold in an initial public offering in May 1996.
"Ford's top priority is to continue to improve and grow our
automotive-related businesses. Our automotive operations are showing substantial
improvement in quality, product excellence and financial performance," Ford
Chairman Alex Trotman said. "The planned spin-off reflects our continuing focus
on this top priority, and our desire to enhance shareholder value.
"The Associates is a premier growth company," Trotman added. "While the
company prospered under Ford's ownership, we believe The Associates has achieved
the market presence and scale to pursue its growth strategy more effectively as
a stand-alone entity. On its own, The Associates will have greater flexibility
in funding its growth with new equity offerings. In addition, it will be able to
compete more effectively for acquisitions by offering its stock as
consideration.
"We believe the market value of The Associates is neither fully nor
consistently reflected in Ford's stock price," Trotman said. "Because the market
views Ford as an automotive company, it has not fully recognized or rewarded us
for our diversification in non-automotive financial services businesses." Ford
believes that its shareholders will benefit from direct ownership of the two
companies.
As announced separately, the Ford Board of Directors today elected to
maintain Ford's present dividend of 42 cents per share for the fourth quarter.
"We don't plan to change the dividend as a result of the spin-off," Trotman
said. "Future dividends will depend on the ongoing performance of our
automotive-related businesses."
Ford said the spin-off is subject to receipt of a ruling from the U.S.
Internal Revenue Service that the transaction will be tax-free to Ford and its
shareholders. The ruling process is expected to take several months. Upon
receipt of a favorable ruling, Ford plans to distribute its 279.5 million shares
of The Associates to Ford shareholders in proportion to their ownership of
common and Class B stock. Based on the current number of outstanding shares,
holders of Ford stock would receive one share of The Associates common stock for
about every four shares of Ford common or Class B stock. The actual distribution
ratio will depend on the number of shares of Ford stock outstanding on the
record date for the spin-off.
Associates First Capital Corporation, based in Dallas, Texas, is a leading
diversified finance company providing consumer and commercial finance, leasing,
and related services through 2,220 offices worldwide. Total assets managed by
the company at June 30, 1997, were more than $55 billion.
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