John Deere sells $850 million notes; Atlantic City Electric taps market for $350 million

By Devika Patel

Knoxville, Tenn., Oct. 9 – Primary activity in the investment-grade bond market on Tuesday saw two new deals pricing.

John Deere Capital Corp., the financing arm of Moline, Ill.-based farm equipment supplier Deere & Co., launched and priced $850 million of two-year floating-rate notes and $500 million of 3.65% five-year fixed-rate notes.

Newark, Del., electric company Atlantic City Electric Co. sold $350 million of 4% 10-year first mortgage bonds.

John Deere taps market

John Deere said it sold $850 million of fixed- and floating-rate notes (A2/A/A) in two tranches.

John Deere sold $350 million of two-year floating-rate notes at par to yield Libor plus 17 basis points.

The company also priced $500 million of 3.65% five-year fixed-rate notes at 99.982 to yield 3.654%, or 60 bps over Treasuries.

Deutsche Bank Securities Inc. and BofA Merrill Lynch were the bookrunners.

Atlantic City Electric prices

Atlantic City Electric said it sold $350 million of 4% 10-year first mortgage bonds (A3/A/A-) at a spread of 80 bps over Treasuries.

The notes priced at 99.902 to yield 4.012%.

Goldman Sachs & Co., Mizuho Securities USA Inc., Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners.

Proceeds will be used to refinance at maturity $250 million of the company’s 7.75% first mortgage bonds due Nov. 15, 2018 and short-term borrowings and for general corporate purposes.

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