Deere & Company subsidiary issues $500 million in 4.15% notes due 2030

Deere Funding Canada Corporation, an indirect wholly owned subsidiary of Deere & Company (NYSE:DE), agreed on October 2 to sell $500 million in aggregate principal amount of 4.150% notes due October 9, 2030. The notes will be fully and unconditionally guaranteed on a senior unsecured basis by Deere & Company.

According to a statement based on the company’s SEC filing, interest on the notes will be paid semi-annually on April 9 and October 9 of each year, starting April 9, 2026. The notes are unsecured and will rank equally with the issuer’s other unsecured and unsubordinated debt.

The offering was executed under a terms agreement entered into with Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, and TD Securities (USA) LLC, as representatives of the underwriters. The notes and guarantee were issued under an indenture dated June 15, 2020, among the issuer, the guarantor, and The Bank of New York Mellon.

The issuer may redeem the notes in whole or in part at any time prior to maturity, subject to at least 15 days’ and not more than 45 days’ notice, at a redemption price described in the final prospectus supplement filed with the SEC on October 3. Additionally, the issuer or guarantor may redeem the notes in whole, but not in part, at 100% of the principal amount plus any accrued and unpaid interest if certain developments affect Canada or other relevant taxing jurisdictions.

The securities were registered under the Securities Act of 1933, as amended, pursuant to a registration statement on Form S-3 filed with the SEC on June 30, 2023. Legal opinions regarding the notes were provided by Kirkland & Ellis LLP and Borden Ladner Gervais LLP.

This summary is based on a press release statement included in the company’s recent SEC filing.

In other recent news, Deere & Company reported its fiscal third-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $4.75, compared to the forecasted $4.58. The company also reported revenue of $10.6 billion, surpassing the anticipated $10.35 billion. Despite these strong results, Deere faced a significant $300 million tariff impact year-to-date, leading the company to raise its full-year tariff cost guidance to $600 million from $500 million. Truist Securities responded by lowering its price target for Deere to $602.00 from $619.00 while maintaining a Buy rating.

Conversely, Truist Securities also raised its price target to $609.00 in a separate analysis, citing a cyclical trough in Deere’s major markets. DA Davidson adjusted its price target to $580.00 from $595.00, maintaining a Buy rating, and noted the downturn in global agricultural equipment markets. Meanwhile, Oppenheimer raised its price target to $566.00 from $560.00, highlighting positive indicators in European and Latin American markets. These developments reflect varying analyst perspectives on Deere’s market position and future outlook.

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