By Andrea Heisinger
New York, Oct. 13 - Deere & Co. sold $1.25 billion of senior notes (A2/A/) in two tranches late on Tuesday, a source away from the sale said.
The $750 million tranche of 4.375% 10-year notes priced at 99.456 to yield 4.443% with a spread of Treasuries plus 110 basis points. This was tighter than guidance of 115 bps.
A $500 million tranche of 5.375% 20-year notes priced at 99.769 to yield 5.394% with a spread of 120 bps over Treasuries. They also came in at the tight end of talk of 125 bps.
The notes are non-callable.
Bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.
Proceeds will be used for general corporate purposes.
The manufacturer and distributor of John Deere agricultural and industrial equipment is based in Moline, Ill.
| Issuer: | Deere & Co.
|
| Issue: | Senior notes
|
| Total amount: | $1.25 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Trade date: | Oct. 13
|
| Settlement date: | Oct. 16
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 16, 2019
|
| Coupon: | 4.375%
|
| Price: | 99.456
|
| Yield: | 4.443%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Non-callable
|
| Price talk: | 115 bps
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 16, 2029
|
| Coupon: | 5.375%
|
| Price: | 99.769
|
| Yield: | 5.394%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Non-callable
|
| Price talk: | 125 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
