By Paul Deckelman
New York, July 27 - Ford Motor Credit Co. LLC priced a $1 billion offering of 10-year senior notes (Ba2/BB-) on Wednesday - the third junk bond transaction of $1 billion or more to come to market in the past two days, following on the heels of megadeals from HCA, Inc. and Reynolds Group Holdings Inc. on Tuesday.
High-yield primaryside sources said that the quickly shopped Ford Credit notes priced at par to yield 5 7/8% in line with pre-deal market price talk.
The issue, being sold in a deal registered with the Securities and Exchange Commission, came to market via joint bookrunning managers Barclays Capital Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc. and RBS Securities Inc.
BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Samuel A. Ramirez & Co., Inc. and Wells Fargo Securities, LLC were co-managers on the offering.
A syndicate source said that the benchmark-sized deal came off the high-grade desks despite the nominally high-yield ratings the bonds carry - a de facto recognition of the attractiveness of Ford Credit paper to crossover investors.
The bonds are not subject to redemption before their maturity date.
Ford Credit - the automotive financing arm of Dearborn, Mich.-based Ford Motor Co., the No. 2 domestic car and truck manufacturer - plans to add the net proceeds from the bond deal to its general funds for use in the purchase of receivables, for making loans to car buyers and to Ford dealers and for use in connection with the retirement of debt.
| Issuer: | Ford Motor Credit Co. LLC
|
| Face Amount: | $1 billion
|
| Estimated proceeds: | $991 million
|
| Securities: | Senior fixed-rate notes
|
| Maturity: | Aug. 2, 2021
|
| Joint bookrunners: | Barclays Capital Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc. and RBS Securities Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Samuel A. Ramirez & Co., Inc, and Wells Fargo Securities, LLC
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Call features: | Non-callable
|
| Trade date: | July 27
|
| Settlement date: | Aug. 1 (T+3)
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| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered public offering
|
| Price talk: | 5 7/8% area
|
| Marketing: | Quick-to-market same-day pricing
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