By Paul A. Harris
St. Louis, Dec. 11 - Ford Motor Credit Co. priced a massively upsized $3 billion issue of senior unsecured notes (B1/B/BB-) on Monday, in a morning to evening drive-by that was increased from in size from $1.5 billion.
The company priced $1.5 billion of 8% 10-year fixed-rate notes at 98.322 to yield 8¼%, on the tight end of the 8 3/8% area price talk.
Ford Motor Credit also priced $1.5 billion of five-year floating-rate notes with a coupon of Libor plus 275 basis points at 98.758 to yield Libor plus 305 bps, tight to the Libor plus 315 bps price talk.
Morgan Stanley, Deutsche Bank Securities, Lehman Brothers, Merrill Lynch & Co. and Goldman Sachs & Co. were joint bookrunners for the Securities and Exchange Commission-registered deal, which was priced off the high-grade desk.
Proceeds will be used for general corporate purposes.
| Issuer: | Ford Motor Credit Co.
|
| Amount: | $3 billion in two tranches (upsized from $1.5 billion)
|
| Security description: | Senior notes
|
| Bookrunners: | Morgan Stanley, Deutsche Bank Securities, Lehman Brothers, Merrill Lynch & Co., Goldman Sachs & Co.
|
| Trade date: | Dec. 11
|
| Settlement date: | Dec. 18
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
|
|
| Fixed-rate notes
|
| Amount: | $1.5 billion
|
| Maturity: | Dec. 15, 2016
|
| Coupon: | 8%
|
| Price: | 98.322
|
| Yield: | 8¼%
|
| Spread: | 373 bps
|
| Call protection: | Non-callable
|
| Price talk: | 8 3/8% area
|
|
|
| Floating-rate notes
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 13, 2012
|
| Coupon: | Three-month Libor plus 275 bps
|
| Price: | 98.758
|
| Discount margin: | Three-month Libor plus 305 bps
|
| Call protection: | Non-callable
|
| Price talk: | Three-month Libor plus 315 bps
|
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