Bloomberg News

Deere Finance Unit Raises $1 Billion in Two-Part Bond Offering

March 06, 2013

Deere & Co. (DE:US), the world’s largest agricultural-equipment maker (DE:US), sold $1 billion of bonds through its finance unit with an offering of fixed- and floating-rate securities.

John Deere Capital issued $600 million of two-year floating-rate notes that pay 7 basis points more than the London interbank offered rate and $400 million of five-year, 1.3 percent bonds that yield 55 basis points more than similar- maturity Treasuries, according to data compiled by Bloomberg.

The unit’s $500 million of 5.35 percent debentures due April 2018 traded at 119 cents on the dollar on Feb. 11 to yield 1.5 percent, or 66 basis points more than benchmarks, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Libor, the rate at which banks say they can borrow from one another, is the standard for about $360 trillion of financial products.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • DE
    (Deere & Co)
    • $90.24 USD
    • -0.02
    • -0.02%
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