Loan & DebtMay 21, 2026, 06:51 AM
Ford assumes $3.8B DOE loan, exits BlueOval SK JV
AI Summary
Ford Motor Company has restructured its involvement in the BlueOval SK (BOSK) joint venture, exiting the partnership and terminating its $6.6 billion capital contribution requirement. Concurrently, Ford was released from its 50% guarantee on BOSK's original $9.633 billion DOE loan. Ford Energy Battery LLC, a wholly owned subsidiary, acquired BOSK's interests in two Kentucky battery plants, and Ford assumed a direct $3.805 billion DOE loan for these facilities. The new loan carries a 4.814% interest rate, with payments scheduled through July 2040, and includes a liquidity covenant requiring Ford to maintain at least $4 billion in available liquidity.
Key Highlights
- Ford exited the BlueOval SK (BOSK) joint venture on May 20, 2026.
- Ford's requirement to contribute up to $6.6 billion in capital to BOSK was terminated.
- Ford was released from its 50% guarantee on BOSK's $9.633 billion U.S. Department of Energy (DOE) loan.
- Ford assumed a $3.805 billion promissory note payable to DOE for two Kentucky battery plants.
- The new Ford DOE loan has an interest rate of 4.814% per annum.
- Quarterly interest-only payments are required through January 15, 2030.
- Quarterly principal and interest payments will commence on April 15, 2030, through July 15, 2040.
- The loan agreement includes a covenant requiring Ford to maintain at least $4 billion in Available Liquidity.
Price Impact
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