Ford Motor has raised its convertible bond issue to $2.5 billion, The Wall Street Journal reports. The senior unsecured notes will offer an interest at a fixed rate of 4.25% a year and falls due in Nov. 15, 2016.

Ford has also granted the underwriters an option to buy an additional $375 million in aggregate principal amount of notes. The company is also seeking to extend the maturity date of its $10.7 billion credit facility to 2013 from 2011. The automaker will use the bonds and a stock sale to raise $3.5 billion to help cut its debt.

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