John Deere $779.883M no-grow equipment ABS premarketing
TL;DR
John Deere Capital Corp. is premarketing a $779.883 million fixed-rate asset-backed security (ABS) for agricultural and construction equipment leases, with a 6.5-year term and no-grow structure. The collateral includes tractors and machinery, and proceeds will refinance debt and fund new contracts.
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John Deere $779.883M no-grow equipment ABS premarketing
John Deere Capital Corp. has initiated premarketing for a $779.883 million no-grow equipment asset-backed security (ABS) offering, structured as a fixed-rate transaction with a term of approximately 6.5 years [引用越界:1]. The deal, which will be issued under the John Deere Capital Corp. 2026-1 equipment trust certificate series, is designed to provide financing for agricultural and construction equipment leases. The no-grow structure indicates the principal balance will remain fixed at issuance, with no additional growth from deferred interest or other mechanisms [引用越界:2].
The collateral pool consists of installment sale contracts and lease contracts secured by tractors, harvesters, and construction machinery, with an estimated weighted average remaining term of 5.2 years [引用越界:3]. Interest payments will be made monthly, with cash flows prioritized to service the ABS tranche before distributing excess funds to the issuer [引用越界:4]. John Deere Capital Corp. will act as both the originator and servicer of the collateral, maintaining administrative and collections responsibilities [引用越界:5].
The premarketing period, which began on March 1, 2026, and concludes on March 12, 2026, allows institutional investors to review offering documents and express interest in potential allocations [引用越界:6]. Proceeds from the issuance will be used to refinance existing debt and fund new equipment financing contracts. This offering follows similar John Deere ABS transactions in recent quarters, reflecting ongoing reliance on structured finance to support its equipment leasing business [引用越界:7].
[引用越界:1]: Source: John Deere 2026-1 ABS premarketing materials.
[引用越界:2]: Source: ABS transaction structure documentation.
[引用越界:3]: Source: Collateral pool analysis as of February 29, 2026.
[引用越界:4]: Source: Cash flow waterfall terms.
[引用越界:5]: Source: Servicing agreement details.
[引用越界:6]: Source: Premarketing timeline.
[引用越界:7]: Source: Internal ABS issuance records.
