Early pricing talks suggest John Deere Capital Corp. will sell its three-year and five-year bond offerings at 0.92 and 1.12 percentage points over benchmark Treasury rates, respectively, according to a person familiar with the deal.
The exact size of the deal hasn't been determined but each piece is expected at a minimum of $250 million, the person said.
The SEC-registered notes are anticipated to be rated A2 by Moody's Investors Service and an equivalent A by Standard & Poor's Ratings Services and Fitch Ratings.
Lead underwriters are Barclays Capital, Deutsche Bank, and J.P. Morgan Chase & Co.
An affiliate of Deere & Co. (DE), the firm has already tapped the U.S. markets six times in 2011, according to data provider Dealogic.
The firm sold three-year floating- and fixed-rate notes in February; two-year floating-rate notes in June and July and five- and 10-year fixed-rate notes in June and July, respectively; five-year notes in August; three-year floating-rate notes in September; and floating-rate two-year and fixed-rate 10-year notes in October.
Deere & Co. announced a record year for earnings in its fourth-quarter financial statement last week. It posted a 46% jump in fourth-quarter income and a 20% rise in sales and revenues. Since the release, its share value has jumped 6.35% to $76.50.
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