Deere & Company (NYSE:DE), the renowned farm equipment manufacturer, has entered into an agreement to issue $2 billion in new debt, as per the latest SEC filing on Thursday. The company is set to offer $1.25 billion in 5.450% notes due in 2035 and $750 million in 5.700% notes due in 2055.
The issuance was agreed upon on Sunday, with Deere & Co entering a terms agreement with several underwriters including Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., and Citigroup (NYSE:C) Global Markets Inc. These notes will be unsecured and rank equally with the company's other unsecured and unsubordinated debt.
Interest on the 2035 notes will be payable semi-annually starting July 16, 2025, while the 2055 notes will follow a similar payment structure beginning July 19, 2025. Deere & Co retains the option to redeem these notes, in whole or in part, with advance notice ranging from 15 to 45 days before maturity, at the redemption prices outlined in the Final Prospectus Supplement filed with the SEC.
The offering of these notes was made under the company's existing shelf registration statement and is part of a public offering detailed in documents filed with the SEC, including a Preliminary Prospectus Supplement and a Free Writing Prospectus, both dated Sunday.
This financial move comes as Deere & Co continues to navigate the global equipment manufacturing market. The notes, once issued, will be governed by an indenture between Deere & Co and The Bank of New York Mellon (NYSE:BK) dated back to September 25, 2008.
The information for this article was obtained from a recent 8-K filing with the Securities and Exchange Commission.
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