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
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.
About Academy
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.
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ERS Services
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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.
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NORTHBROOK, Ill., Nov. 19, 2020 – Today, The Allstate Corporation (NYSE: ALL) priced $1.2 billion of 5-year and 10-year senior notes through a syndicate exclusively comprised of minority-, women- and veteran-owned business enterprises (MWVBEs). This is the first time a corporate bond offering of this size has been managed exclusively by MWVBEs.
“It is time to take a stand to create more equity in the securities markets,” said Tom Wilson, Allstate’s Chair, President and CEO. “Diverse firms have the capabilities to increase their market share as evidenced by the results of this transaction. Allstate is committed to doing even more, including doubling our trading volume with diverse firms in 2021. Sustainability will require the commitment of other corporate bond issuers, investment managers and leading investment banks, many of whom have extensive programs that are being expanded. Equity is good for all of us!” concluded Wilson.
The $1.2 billion offering of 5- and 10-year senior notes will fund a portion of Allstate’s $4 billion National General acquisition, expected to close in early 2021. Loop Capital Markets, Academy Securities, Ramirez & Co. Inc. and Siebert Williams Shank were joint bookrunning managers of the offering. AmeriVet Securities, Cabrera Capital Markets LLC, C.L. King & Associates, Penserra Securities LLC and R. Seelaus & Co., LLC were co-managers of the offering. This is the largest transaction the firms have actively led.
“We are delighted that our long-standing relationship with Allstate enabled us to source capital for them and live into our mantra of putting clients first,” said Jim Reynolds, Chairman and CEO of Loop Capital, which he founded in 1997.
“This successful transaction highlights that issuers can benefit by leveraging the talent in MWVBEs while creating more equity in the financial markets,” said Mario Rizzo, Allstate’s Chief Financial Officer.
Allstate is one of the largest providers of protection to consumers in the U.S., protecting their cars, homes, phones, personal property, lives and identities with 172.8 million policies in force and $39.5 billion of premiums over the last 12 months. Allstate’s Sustainability Report provides more information on inclusive diversity, community engagement and other environmental, social and governance practices.
Allstate has filed a registration statement (including a prospectus and related prospectus supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the related prospectus supplement and other documents Allstate has filed with the SEC for more complete information about Allstate and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you may obtain a copy of the prospectus and related prospectus supplement by contacting Allstate Investor Relations at (800) 416-8803 or INVREL@allstate.com.
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Chicago, IL – November 2, 2020 – Loop Capital Markets, LLC (“Loop Capital”) today announced the completion of its mandate as a joint bookrunner on Verizon Communications Inc.’s (“Verizon”) $1.2 billion asset-backed securities (“ABS”) issuance through Verizon Owner Trust 2020-C. The deal is a landmark one for Loop Capital, as it represents the first time the African-American-owned firm has served as lead underwriter on an ABS transaction.
Verizon Owner Trust 2020-C issued $1.2 billion in bonds across three classes. The transaction, Verizon’s third ABS issuance in 2020, allows the telecommunications company to continue to drive growth in its business by providing financing to customers for device purchases. Also serving as joint bookrunners on the transaction were BofA Securities Inc. (structuring agent), Mizuho Securities USA LLC and Wells Fargo Securities, LLC.
“Loop Capital Markets is thrilled to expand our long-term relationship with Verizon to include this important and meaningful role on their ABS program. I appreciate Verizon’s commitment to putting their words about business diversity into action. They continue to be a pacesetter among large corporations,” said Jim Reynolds, Chairman and CEO, Loop Capital.
Working with Verizon on this ABS transaction allowed us to leverage the strength of the firm’s fixed income investor relationships,” said Sidney Dillard, Partner and Head of Corporate Investment Banking at Loop Capital. “As well, as a joint bookrunner, we were able to extend our deal leadership capabilities to include structured products.”
In September 2020, Loop Capital also served as a joint book-running manager on Verizon’s $1 billion Green Bond issuance. The deal demonstrated Verizon’s commitment to promoting racial equity in the capital markets, as well as to green finance and taking responsibility for protecting the environment.
“Loop Capital played an integral role on Verizon Owner Trust 2020-C, which achieved the tightest credit spread and lowest all-in yield in the history of Verizon’s ABS program. This transaction demonstrated that, when given the opportunity, diversity firms can execute very well in the capital markets,” said Chan Sin, Vice President and Assistant Treasurer, Verizon.
“While Verizon has had a long history of partnering with diversity firms on capital market transactions, today marks an important first for Verizon, Loop, and the ABS market as Loop was a lead underwriter on our very successful $1.2 billion transaction,” stated Scott Krohn, Senior Vice President and Treasurer, Verizon. Verizon is very committed to promoting racial equity across all platforms, including in the capital markets. We hope that other issuers will follow our lead on this transaction, as well as on our recent Green Bond transaction, by taking action to address structural inequity and economic disparity faced by African-American and other minority- and women-owned businesses.”
Media Contact:
Jorian Seay
media@loopcapital.com
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.
Disclaimer
Loop Capital® is a registered trademark of Loop Capital Holdings, LLC. Securities and investment banking services are offered through Loop Capital Markets LLC. Loop Capital Markets LLC is a registered broker-dealer and a member of the Financial Industry Regulatory Authority (FINRA), the Municipal Securities Rulemaking Board (MSRB) and the Securities Investor Protection Corporation (SIPC).
Loop Capital prepared this document for informational purposes only. This document and the information herein (collectively “Information”) is not a research report and it should not be construed as such. The Information has been gathered from sources believed to be reliable, but is not guaranteed and is not a complete summary of all available data. Any historical price(s) or value(s) are also only as of the date indicated and from any source that may be noted. Loop Capital is under no obligation to update opinions or other information. Any opinions expressed by Loop Capital represent our present opinions as of the date of this Information and are subject to change without further notice. The Information, including proposed terms and conditions, are indicative and for discussion purposes only. Finalized terms and conditions of any transaction or engagement are subject to further discussion and negotiation and will be evidenced by a formal agreement.
Loop Capital Markets recently expanded its relationship with the Federal Reserve Bank of New York as a transactional counterparty for two 13(3) facilities, including the Secondary Market Corporate Credit Facility (SMCCF) and the Commercial Paper Funding Facility (CPFF).
In addition, Loop Capital Markets has also been approved as a counterparty for agency commercial mortgage backed securities (Agency CMBS) transactions with the New York Federal Reserve Bank.
Detailed press releases with additional information can be found at the following links to the website of the New York Federal Reserve Bank:
Commercial Paper Funding Facility (CPFF)
