Deere Secures $2B FDIC Loan

Deere & Co., Moline, IL, secured a $2 billion loan in mid-December with the help of the Federal Deposit Insurance Corp. (FDIC), which backstopped the deal, The Wall Street Journal reported. The offering, which is guaranteed by the FDIC’s Temporary Liquidity Guarantee Program, saved Deere tens of millions of dollars through a low interest rate of 3%.
That’s compared with over 5% yields on some of its current debt. By taking the backstop, Deere joins General Electric and other companies that have received federal support as the government tries to buttress the economy. ♦