Published on 4/3/2023 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Ford Motor Credit prices $1.5 billion 6.8% five-year notes at 99.987
By Paul A. Harris
Portland, Ore., April 3 – Ford Motor Credit Co. LLC priced a $1.5 billion issue of 6.8% five-year senior notes at 99.987 to yield 6.8% (Ba2/BB+/BB+) in a Monday drive-by, according to market sources.
The yield printed on top of yield talk. Initial guidance was 7 1/8% to 7¼%.
The deal, which priced on the investment-grade syndicate desk, was heard to have played to $5 billion of demand, a trader said.
The notes will be callable with a Treasuries plus 50 bps make-whole premium until April 12, 2028, then going forward at par.
The joint bookrunners are Citigroup Global Markets Inc. (billing and delivery), J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Commerz Markets LLC and Wells Fargo Securities, LLC.
Proceeds will be used for general corporate purposes.
The issuer is the financial services arm of Dearborn, Mich.-based Ford Motor Co.
| Issuer: | Ford Motor Credit Co. LLC
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Maturity: | May 12, 2028
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Commerz Markets LLC and Wells Fargo Securities, LLC
|
| Co-managers: | CIBC World Markets Corp., U.S. Bancorp Investments, Inc., Blaylock Van, LLC, C.L. King & Associates, Inc., Mischler Financial Group, Inc. and R. Seelaus & Co., LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Gibson, Dunn & Crutcher LLP
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| Coupon: | 6.8%
|
| Price: | 99.987
|
| Yield: | 6.8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 12, 2028; thereafter at par
|
| Trade date: | April 3
|
| Settlement date: | April 6
|
| Ratings: | Moody's: Ba2
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| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | Yield of 7 1/8% to 7¼%
|
| Cusip: | 345397C92
|
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