By Paul A. Harris
St. Louis, Oct. 26 - Ford Motor Credit Co. priced $1 billion of split-rated bonds in two tranches (Baa3/BB+/BBB-) on Wednesday, according to market sources.
The finance unit of Ford Motor Co. priced a $500 million issue of two-year floating-rate notes at par to yield three-month Libor plus 300 basis points, in the middle of the three-month Libor plus 300 basis points area price talk.
Ford Motor Credit also priced a $500 million issue of 8 5/8% five-year fixed-rate notes at 99.135 to yield 8.843%, a 437.5 basis points spread to Treasuries, which was again in the middle of the 437.5 basis points area price talk.
Deutsche Bank, Barclays Capita and LaSalle were the bookrunners. BKNY Securities and Calyon Securities were co-managers.
| Issuer: | Ford Motor Credit Co.
|
| Amount: | $1 billion in two tranches
|
| Bookrunners: | Deutsche Bank, Barclays Capita, LaSalle
|
| Co-managers: | BKNY Securities, Calyon Securities
|
| Trade date: | Oct. 26
|
| Settlement date: | Nov. 2
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
|
|
| Floating-rate tranche
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2007
|
| Coupon: | Three-month Libor plus 300 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 300 basis points
|
| Price talk: | Three-month Libor plus 300 basis points area
|
|
|
| Fixed-rate tranche
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2010
|
| Coupon: | 8 5/8%
|
| Price: | 99.135
|
| Yield: | 8.843%
|
| Spread: | 437.5 basis points
|
| Price talk: | 437.5 basis points area spread to Treasuries
|
|
|
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