John Deere sells $1.5 billion of notes; Toyota, Duke Energy Ohio detail recent issuance

By Devika Patel

Knoxville, Tenn., Jan. 4 – John Deere Capital Corp. was the lone reported issuer in the investment-grade bond market on Friday, while two other issuers reported deals that concluded a day earlier.

John Deere, the financing arm of Moline, Ill.-based farm equipment supplier Deere & Co., sold $1.5 billion of notes (A2/A/A) in three parts.

Meanwhile, Charlotte, N.C.-based Duke Energy Ohio, Inc. said it priced $800 million of first mortgage bonds (A2/A) in two tranches late Thursday.

Also, Torrance, Calif.-based Toyota Motor Credit Corp. sold $2 billion of series B medium-term notes (Aa3/AA-) in four parts on Thursday.

John Deere sells $1.5 billion

John Deere priced $1.5 billion of fixed- and floating-rate notes in three tranches on Friday.

The company sold $500 million of floating-rate notes due July 10, 2020 at par to yield Libor plus 42 basis points.

John Deere also sold $600 million of 3.2% three-year notes at 99.904 to yield 3.234%, or 77 bps over Treasuries.

There was $400 million of 3.45% five-year notes priced at 99.991 to yield 3.452%, or 97 bps over Treasuries.

Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and MUFG were the bookrunners.

Duke Energy Ohio prices

Duke Energy Ohio, a Duke Energy Corp. subsidiary, brought $800 million of first mortgage bonds to market in two tranches late Thursday.

The company sold $400 million of 3.65% 10-year notes at 99.956 to yield 3.655% with a spread of 110 bps over Treasuries.

Duke Energy Ohio priced $400 million of 4.3% 30-year notes at 140 bps over Treasuries. These notes were priced at 99.812 to yield 4.311%.

Citigroup, Credit Suisse Securities (USA) LLC, Goldman Sachs and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay at maturity $450 million of the company’s 5.45% first mortgage bonds due April 1, 2019, to pay down some commercial paper and for general corporate purposes.

Toyota sells $2 billion

Toyota, the funding arm of auto manufacturer Toyota, issued $2 billion of series B medium-term notes in four parts Thursday evening.

A $300 million two-year floating-rate note was sold at par. The interest rate will be equal to Libor plus 54 bps.

There was also $700 million of 3.05% two-year notes that priced at 99.94 to yield 3.081% with a spread of Treasuries plus 70 bps.

Toyota sold $500 million of 3.35% five-year notes at 99.973 to yield 3.356%, or Treasuries plus 100 bps.

A $500 million 3.65% 10-year note sold at 99.627 to yield 3.695% with a spread of Treasuries plus 115 bps.

BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Lloyds Securities Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

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