Pricing Supplement No. 3 Dated June 2, 1994
(To Prospectus and Prospectus Supplement Dated May 4, 1994)
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 has designated $100,000,000 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. Lehman
Brothers Inc. has agreed to purchase the Notes at a price of 100% 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. See the accompanying Prospectus and Prospectus
Supplement for further information regarding the Notes described in this
Pricing Supplement.
Issue Date: June 9, 1994
Principal Amount: $100,000,000
Interest Rate Basis: Prime Rate (as hereinafter defined)
Spread: Minus 232 basis points (2.32%)
Interest Payment Dates: Quarterly on the 9th day of the months of
March, June, September and December during the
period commencing September 9, 1994, and ending
on the Stated Maturity
Stated Maturity: June 10, 1996
Interest Reset Dates: Daily as hereinafter provided
Reference Agent: Chemical Bank
LEHMAN BROTHERS INC.
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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 quarterly on the 9th day of
March, June, September and December during the period commencing on
September 9, 1994 and ending on June 10, 1996 (the "Maturity Date") to the
person in whose name any Note is registered on the close of business
fifteen days preceding each Interest Payment Date or the Maturity Date, as
the case may be. 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 an Interest Period will be equal to the Prime Rate
minus 232 basis points (2.32%). The Interest Rate for each Interest Period
will be reset on each Business Day during the period commencing with June
9, 1994 and ending with June 7, 1996 (each such day an "Interest Reset
Date"); provided, however, that the first Business Day preceding any
Interest Payment Date or the Maturity Date, as the case may be, shall not
be deemed to be an Interest Reset Date. "Interest Period" shall mean the
period from and including an Interest Reset Date to but not including the
next succeeding Interest Reset Date, and in the case of the last Interest
Period in an Interest Payment Period, from and including the second
Business Day preceding such Interest Payment Date or the Maturity Date, as
the case may be. "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.
"Interest Payment Period" shall mean the period from and including an
Interest Payment Date, or in the case of the first such period, June 9,
1994 to and including the day prior to the next Interest Payment Date and,
in the case of the last such period, from and including March 9, 1996 to
but not including the Maturity Date.
The "Prime Rate" shall mean the rate determined in accordance with the
following provisions:
For each Interest Reset Date, Chemical
Bank (the "Reference Agent"), as an agent for
the Company, will determine the Prime Rate
which shall be the prime rate or base lending
rate on the date as such a rate is published
in H.15 (519) under the heading "Bank Prime
Loan". In the event that such rate is not so
published on or prior to the Calculation Date
pertaining to the Interest Payment Period in
which such Calculation Date occurs, then the
Prime Rate shall be calculated by the
Reference Agent and shall be the arithmetic
mean of the rates of interest publicly
announced by each bank that appeared on the
Reuters Screen NYMF Page (as defined below)
as such bank's prime rate or base lending
rate as in effect for such Interest Reset
Date as quoted on the Reuters Screen NYMF
Page. If fewer than four such rates appear
on the Reuters Screen NYMF Page on such date,
then the Prime Rate shall be the arithmetic
mean of the prime rates or base lending rates
(quoted on the basis of the actual number of
days in the year divided by a 360-day year)
as of the close of business on such Interest
Reset Date by three major banks in The City
of New York selected by the Reference Agent;
provided, however, that if fewer than three
such selected banks were quoted as described
in this sentence, the Interest Rate shall be
the Interest Rate in effect on the day prior
to such Interest Reset Date. "Reuters Screen
NYMF Page" means the display page designated
as page "NYMF" on the Reuters Monitor Money
Rates Service (or such other page as may
replace the NYMF page on that service for the
purpose of displaying prime rates or base
lending rates of major United States banks).
The "Calculation Date" pertaining to any
Interest Period occurring in an Interest
Payment Period shall be the second Business
Day preceding the last day of such Interest
Payment Period.
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 360 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 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.
The Interest Rate for each Interest 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 Prime
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 Prime Rate for any Interest Period
or the Interest Rate for any Interest 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.
