Ford said BlueOval SK, LLC, its 50/50 joint venture with SK On, entered into a Loan Arrangement and Reimbursement Agreement on December 13, 2024, under which the Department of Energy agreed to arrange for the Federal Financing Bank to purchase a note from the borrower and make advances of up to $9,633,040,000.

1. 01

   Ford said BlueOval SK, LLC, its 50/50 joint venture with SK On, entered into a Loan Arrangement and Reimbursement Agreement on December 13, 2024, under which the Department of Energy agreed to arrange for the Federal Financing Bank to purchase a note from the borrower and make advances of up to $9,633,040,000.

2. 02

   The company said the BOSK DOE Loan will be used to finance the construction of battery manufacturing plants in Tennessee and Kentucky, and that BlueOval SK, LLC is a consolidated subsidiary of SK On.

3. 03

   The company said that under the Sponsor Support, Share Retention and Subordination Agreement, Ford Motor has agreed to guarantee 50% of BlueOval SK's payment obligations under the BOSK DOE Loan. It said the final maturity date of the loan is expected to be in July 2040.

4. 04

   The company said the SSA contains a covenant requiring Ford not to permit Available Liquidity to be less than $4,000,000,000, and that cross-payment and cross-acceleration defaults on borrowed money of Ford or a significant guarantor of $1,000,000,000 or more are included among the events of default.

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Original filing

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