John Deere priced a $1 billion securitization of loan contracts on new and used agricultural and construction equipment, according to deal documents.

The fixed rate class A-1 notes due September 2015 yielded 0.21%; the fixed rate A-2 A notes due July 3017 yielded 0.54%. and the floating rate A-2B due July 2017 notes yielded 0.18%. The class A-4 notes due June 2021 yielded 1.50%. Fitch Ratings assigned   preliminary rating of ‘AAA’ to all of the tranches.

The 2.3 year, A-3  notes yielded 1.08%  and priced at a spread of 23 basis points over interpolated swaps curve, according to a Bloomberg report.

RBC Capital Markets Citigroup and Mitsubishi UFJ Financial Group are the lead underwriters on John Deere’s latest deal.

The notes are backed by a pool of 20,174 U.S. retail installment sale and loan contracts secured by new and used agricultural and construction equipment originated by John Deere Capital Corporation. The pool contains 75.37% agricultural and 24.63% construction equipment. These concentrations are similar with those of the sponsor's previous securitization, JDOT 2014.

JDOT 2014-B will be the 23rd U.S. public securitization issued by John Deere. The equipment manufacturer was last in the market in April with a $1 billion deal. The notes were backed by a pool of agricultural and construction equipment retail installment sale and loan contracts secured by new and used agricultural and construction equipment. Prior to that, it issued an $849 million equipment loan securitization in August of 2013.

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