Pricing Supplement No. 7 Dated June 8, 1994
(To Prospectus and Prospectus Supplement Dated May 4, 1994)
Rule 424(b)(3)
Registration Statement
No. 33-53101
U.S. $6,000,000,000
FORD MOTOR CREDIT COMPANY
Medium-Term Notes Due from 9 Months to 30 Years from Date of Issue
Ford Motor Credit Company ("Ford Credit") has designated $200,000,000
aggregate principal amount of its Medium-Term Notes Due from 9 Months to 30
Years from Date of Issue having the specific terms set forth below.
Goldman, Sachs & Co. have agreed to purchase the Notes at a price of 99.75%
of their principal amount for resale at an initial public offering price of
100% of the principal amount. After the initial public offering, the
offering price may be changed.
Issue Date: June 13, 1994
Principal Amount: $200,000,000
Interest Rate Basis: Treasury Rate (as hereinafter defined)
Spread: Plus 18 basis points (.18%)
Interest Payment Dates: Semiannually on the 13th day of the
months of June and December during the
period commencing December 13, 1994,
and ending on the Stated Maturity
Stated Maturity: June 13, 1997
Interest Reset Dates: Weekly as hereinafter provided
GOLDMAN, SACHS & CO.
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DESCRIPTION OF NOTES
The following description of the particular terms of the Notes offered
hereby supplements, and to the extent inconsistent therewith replaces, the
descriptions of the general terms and provisions of the Notes set forth in
the accompanying Prospectus Supplement and of the Debt Securities set forth
in the accompanying Prospectus, to which descriptions reference is hereby
made. All terms used but not defined herein which are defined in the
accompanying Prospectus or Prospectus Supplement shall have the meanings
therein assigned to them.
Interest
Interest on the Notes will be payable semiannually on the 13th day of
June and December during the period commencing on December 13, 1994
and ending on the Stated Maturity (each such date an "Interest Payment
Date") to the person in whose name any Note is registered on the close of
business fifteen days preceding each Interest Payment Date. The Notes are
not subject to redemption prior to the Maturity Date.
The per annum interest rate on the Notes (the "Interest Rate" ) in effect
for each day of a Calculation Period will be equal to the Treasury Rate (as
hereinafter defined) having an Index Maturity of six months plus a Spread
equal to 18 basis points (0.18%), except that the Interest Rate applicable
to the initial Calculation Period commencing on June 13, 1994 to but
excluding the initial Interest Reset Date shall be 4.88% per annum. The
Interest Rate for each subsequent Calculation Period shall be reset on each
Interest Reset Date and shall be determined on the basis of the Treasury
Rate determined for the Treasury Interest Determination Date pertaining to
such Interest Reset Date.
"Calculation Period" shall mean for each Calculation Period subsequent to
the initial Calculation Period, the period commencing on an Interest Reset
Date and ending on the day immediately preceding the next following Interest
Reset Date except that (i) the first Calculation Period in each Interest
Payment Period subsequent to the initial Interest Payment Period shall
commence on the first day of such Interest Payment Period and end on the day
immediately preceding the first Interest Reset Date in such Interest Payment
Period occurring subsequent to the first day of such Interest Payment Period
and (ii) the final Calculation Period of each Interest Payment Period shall
commence on the Interest Reset Date occurring in the calendar week
immediately preceding the week in which the Interest Payment Date for such
Interest Payment Period occurs and end on the day prior to such Interest
Payment Date unless such last Calculation Period consists of fewer than six
Business Days in which case such last Calculation Period shall commence on
the Interest Reset Date occurring in the second calendar week immediately
preceding the week in which the Interest Payment Date for such Interest
Payment Period occurs and end on the day prior to such Interest Payment
Date.
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"Interest Payment Period" shall mean the period from and including an
Interest Payment Date (or in the case of the initial Interest Payment
Period, June 13, 1994) to and including the day prior to the next succeeding
Interest Payment Date (or in the case of the last Interest Payment Period,
the Stated Maturity).
"Interest Reset Date" shall mean Tuesday of each calendar week during the
period commencing with June 13, 1994 and ending on the Stated Maturity;
provided, however, that, the Interest Reset Date pertaining to the first
Calculation Period in each Interest Payment Period subsequent to the initial
Interest Payment Period shall be deemed to be the first day of such Interest
Payment Period; and, provided, further, that if any Interest Reset Date
would otherwise be a day that is not a Business Day, then such Interest
Reset Date shall be the next succeeding Business Day.
"Treasury Interest Determination Date" pertaining to any Interest Reset
Date will be the day of the week in which such Interest Reset Date occurs on
which Treasury bills having an Index Maturity of six months would normally
be auctioned. Treasury bills are usually sold at auction on Monday of each
week unless that day is a legal holiday in which case the auction is usually
held on the following Tuesday, except that such auction may be held on the
preceding Friday. If, as a result of a legal holiday, an auction is so held
on the preceding Friday, such Friday will be the Treasury Interest
Determination Date pertaining to the Interest Reset Date occurring in the
next succeeding week. If an auction date shall fall on any Interest Reset
Date, then such Interest Reset Date shall instead be the first Business Day
immediately following such auction date.
"Business Day" shall mean any day that is not a Saturday or a Sunday and
that, in The City of New York, is not a day on which banking institutions
are generally authorized or obligated by law to close.
For each Treasury Interest Determination Date pertaining to an Interest
Reset Date, Chemical Bank (the "Reference Agent"), as agent for Ford Credit,
will determine the Treasury Rate.
"Treasury Rate" means with respect to any Treasury Interest Determination
Date pertaining an Interest Reset Date, the Bond Equivalent Yield of the
rate for the most recent auction on such date of United States Treasury
bills having the Index Maturity of six months as such rate is set forth in
H.15(519) for that day opposite the Index Maturity of six months under the
caption "U.S. Government Securities/Treasury Bills/Auction Average
(Investment") as displayed on Telerate Page 57 under the column titled
"*Avge Invest Yield". If at the close of business on the Calculation Date
with respect to any Treasury Interest Determination Date, United States
Treasury bills of the Index Maturity of six months have been auctioned on
such Treasury Interest Determination Date but the Bond Equivalent Yield for
such rate for such Interest Determination Date is not yet displayed on
Telerate Page 57, such Bond Equivalent Yield as so published shall be
obtained by the Reference Agent from whatever source the Reference Agent
shall select in its sole discretion. If United States Treasury bills having
Index Maturity of six months are not auctioned during any period of seven
consecutive calendar days ending on and including any Friday and a Treasury
Interest Determination Date would have occurred if such Treasury bills had
been auctioned during that seven-day period, a Treasury Interest
Determination Date will be deemed to have occurred on the day during that
seven-day period on which such Treasury bills would have been auctioned in
accordance with the usual practices of the United States Department of the
Treasury, and the rate for that Treasury Interest Determination Date will be
the Bond Equivalent Yield on the rate set forth in H.15(519) for that day
opposite the Index Maturity of six months under the caption "U.S. Government
Securities/Treasury Bills/Secondary Market." If at the close of business on
the Calculation Date with respect to the relevant Treasury Interest
Determination Date such rate is not yet published in H.15(519), the rate for
that Treasury Interest Determination Date will be the Bond Equivalent Yield
of the arithmetic mean of the secondary market bid rates of six primary
United States government securities dealers in The City of New York selected
by the Reference Agent, after consultation with Ford Credit, as of
approximately 3:30 p.m., New York City time, on that day for the issue of
United States Treasury bills with a remaining maturity closest to the Index
Maturity of six months; provided, however, that if fewer than three dealers
selected as aforesaid by the Reference Agent are quoting as mentioned in
this sentence, the Treasury Rate with respect to such Interest Determination
Date will be the Treasury Rate in effect on the day immediately preceding
such Treasury Interest Determination Date.
"Bond Equivalent Yield" means the yield to maturity (expressed as a bond
equivalent, on the basis of a year of 365 days or 366 days, as applicable,
and applied on a daily basis).
"Calculation Date" shall mean the Interest Reset Date pertaining thereto.
"Telerate Page 57" shall mean the display page so designated on the Dow
Jones Telerate Service (or such other page as may replace that page or that
service, or such other service as may be nominated by the information
vendor, for the purpose of displaying rates or prices comparable to the
Treasury Rate).
The amount of interest for each day that the Notes are outstanding (the
"Daily Interest Amount") will be calculated by dividing the Interest Rate in
effect for such day by 365 (366 for each day in 1996) and multiplying the
result by the principal amount of the Notes. The amount of interest to be
paid on the Notes for each Interest Payment Period will be calculated by
adding the Daily Interest Amounts for each day in the Interest Payment
Period.
In any case in which an Interest Payment Date (other than the Stated
Maturity) is not a Business Day, payment of interest shall be made on the
next succeeding Business Day and the Interest Payment Period scheduled to
end on such Interest Payment Date shall end on such next succeeding Business
Day.
If the Maturity Date is not a Business Day, payment of principal and
interest shall be made on the next succeeding Business Day and no interest
will accrue for the period from and after the Maturity Date.
The Interest Rate will in no event (i) be higher than the maximum rate
permitted by New York law as the same may be modified by United States law
of general application or (ii) be less than zero.<PAGE>
The Interest Rate for each Calculation Period and the amount of interest to
be paid on the Notes for each Interest Payment Period will be determined by
the Reference Agent. All calculations made by the Reference Agent shall, in
the absence of manifest error, be conclusive for all purposes and binding on
Ford Credit and the holders of the Notes. So long as the Treasury Rate is
required to be determined with respect to the Notes, there will at all times
be a Reference Agent. In the event that any then acting Reference Agent
shall be unable or unwilling to act, or that such Reference agent shall fail
duly to establish the Treasury Rate for any Calculation Period or the
Interest Rate for any Calculation Period, or that Ford Credit proposes to
remove such Reference Agent, Ford Credit shall appoint itself or another
person which is a bank, trust company, investment banking firm or other
financial institution to act as the Reference Agent.
