A syndicate comprised solely of Minority-, Women- and Veteran- owned firms priced a corporate bond transaction for John Deere Capital Corporation at record low spreads
- John Deere Capital Corporation becomes the first industrial captive finance issuer to solely use diverse underwriters
- The new 3-year notes priced at 18 basis points over Treasuries – the tightest 3-year spread by a financial issuer and third lowest 3-year spread on record
Moline, IL, June 16, 2021 — On June 7, 2021, Deere & Co’s (NYSE: DE) subsidiary, John Deere Capital Corporation, priced a 3-year senior notes offering through a syndicate exclusively led by minority-, women- and veteran-owned business enterprises (MWVBEs) – making it the first corporate bond offering by an industrial captive finance issuer to use a syndicate exclusively comprised by MWVBEs.
John Deere’s $600 million offering of 3-year senior notes priced at 18 bps over Treasuries, achieving the tightest 3- year spread by a financial issuer and the third lowest 3-year corporate bond spread on record.
John Deere hired Veteran-owned firm Academy Securities, African-American-owned firm Loop Capital Markets, Hispanic-owned firm Ramirez & Co., Inc. and African-American and Women-owned firm Siebert Williams Shank as joint book-runners on the transaction.
Enlisting diverse banks “helps drive greater equity and can also help us achieve stronger business results,” Deere Chief Financial Officer Ryan Campbell said in a statement.
“Loop Capital Markets is delighted that our long-standing relationship with John Deere has enabled us to source capital for them through this bond offering. With this transaction John Deere has established itself as a clear leader in diversity and inclusion, and we believe this transaction helps further advance our collective mission of creating greater equity on Wall Street.” said Jim Reynolds, Chairman and CEO of Loop Capital, which he founded in 1997.
“As corporate issuers continue to build upon their inclusive banking relationships, John Deere has set a new and elevated standard in the marketplace by facilitating an opportunity for this diverse group of Joint Bookrunners to showcase their unique capabilities. The Academy team is proud to have helped lead this landmark transaction, and honored to share our social mission with John Deere.” said Chance Mims, Chairman and CEO of Academy Securities.
Sam Ramirez Jr., senior partner at Ramirez & Co., Inc., added, “Congratulations to John Deere for completing this landmark transaction with an all-diverse syndicate of banks. We applaud the Company for taking this meaningful step toward inclusion, and for its high level of engagement with the diverse broker/dealer community. As the nation’s largest and oldest Hispanic-owned investment bank, we know that it is opportunities like this that have enabled us to grow our businesses over our 50-year history.”
“Siebert Williams Shank applauds John Deere for taking bold steps to work with diverse and inclusive firms in an exclusive manner on this transaction” said Christopher J. Williams, Chairman of Siebert Williams Shank & Co., LLC. “With this offering’s strong pricing results, John Deere’s leadership amplifies the value proposition that MWVBEs have the expertise to actively lead underwritings and execute them at very high standards. We are very confident in our ability to support our issuer’s funding goals and priorities, and appreciate the John Deere organization for creating this opportunity for us.”
In February 2021, Deere & Company released its 2020 Sustainability Report. Built around John Deere’s higher purpose — “We run so life can leap forward” — the report features how the company creates more sustainable outcomes for its customers, employees, dealers, suppliers, shareholders and the communities it serves. The report also details John Deere’s progress toward achieving its 2022 Sustainability Goals and other environmental, social and governance priorities.
To learn more about John Deere’s progress and goals around economic, environmental and social advancement, see https://www.deere.com/en/our-company/sustainability/sustainability-report/
Deere & Company (www.JohnDeere.com) is a world leader in providing advanced products, technology and services for customers whose work is revolutionizing agriculture and construction — those who cultivate, harvest, transform, enrich and build upon the land to meet the world’s increasing need for food, fuel, shelter and infrastructure.
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About Loop Capital Markets
Loop Capital is a full-service investment bank, brokerage and advisory firm that provides creative capital solutions for corporate, governmental and institutional entities across the globe. Loop Capital’s reputation for integrity and service – coupled with the firm’s track record of success – has allowed them to serve an expanding number of clients from coast to coast and globally. The firm continues to grow because their clients continue to ask them to do more for them. The firm’s uncompromising commitment to excellence means that clients get superior, focused service across the entire platform.
Academy Securities is a preeminent disabled veteran owned investment bank with strength in capital markets, public finance, fixed income and equity trading. Leadership and staff have had intensive military training prior to entering and gaining in depth financial services experience in global capital markets. We are mission driven with a high ethical code, a solid sense of accountability and strive for excellence in the pursuit of our clients’ success. Intellectual assets, strong visionary leaders and a proud team commitment bring out the best in each other for the benefit of our clients. Academy is our nation’s first and only post-9/11 disabled veteran owned investment bank and is a certified as a DVBE, SDVOSB, and MBE. The firm has a strong top and middle tier client base served by a national platform with offices in New York, Chicago, San Diego, Los Angeles, Chapel Hill, Kansas City, Austin and Sacramento. Information about Academy Securities is available at www.academysecurities.com.
About Samuel A. Ramirez & Company, Inc.
Founded in 1971, Ramirez is a nationwide, full-service investment bank, brokerage and advisory firm serving institutional clients and retail investors across six core areas: municipal finance, investment banking, fixed income sales and trading, institutional equities, wealth management and asset management. The firm is recognized as one of the industry’s preeminent and best-capitalized boutique underwriters, having cultivated a banking, underwriting, sales and trading, and strategy team that is unique in its integration.
About Siebert Williams
Siebert Williams Shank & Co., LLC (SWS) is a leading independent non-bank financial services firm that offers investment banking, sales and trading, research, advisory, and asset management services. It is the only U.S. investment bank certified as both a minority-owned and women-owned enterprise. It is co-headquartered in New York City and Oakland, Calif., with over 20 offices nationwide.