Pricing Supplement No. 42 Dated March 24, 1994
(To Prospectus and Prospectus Supplement
Dated December 1, 1993) Rule 424(b)(3)
Registration Statement No.
33-51075
U.S. $3,000,000,000
FORD MOTOR CREDIT COMPANY
Medium-Term Notes Due from 9 Months
to 30 Years from Date of Issue
Ford Motor Credit Company has designated $250,000,000
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. Merrill Lynch & Co., Merrill Lynch, Pierce,
Fenner & Smith Incorporated has agreed to purchase $250,000,000
of the Notes at a price of 99.65% of the principal amount for
resale at an initial public offering price of 100% of the
principal amount. After the initial public offering, the public
offering price may be changed. See the accompanying Prospectus
and Prospectus Supplement, including the information regarding
Floating Rate Notes, for further information regarding the Notes
described in the Pricing Supplement.
Issue Date: April 5, 1994
Stated Maturity: April 5, 1999
Principal Amount: $250,000,000
Interest Rate (a) For the period from and
Calculation: including the Issue Date to but
excluding the first Interest
Reset Date, the Two-Year Swap Rate
(as hereinafter defined) determined
March 31, 1994, minus 50 basis
points (0.50%), and (b) for each
Interest Period thereafter, the
Two-Year Swap Rate, minus 50 basis
points (0.50%).
Interest Reset Dates: The 5th day of the months of
July, October, January and April
during the period commencing July
5, 1994 and ending January 5, 1999.
Interest Payment Dates: The 5th day of the months of April,
July, October and January during
the period commencing July 5, 1994
and ending Juanuary 5, 1999, and
at Stated Maturity.
Reference Agent: Chemical Bank
The "Two-Year Swap Spread" means with respect to each
Interest Determination Date and the related Interest Reset Date:
(i) The two-year mid-market swap rate for U.S. Dollar
interest rate swaps with a term of two years determined by the
Reference Agent by averaging the two rates displayed as of 2:00
p.m. New York City time on Telerate Page 42276, which Telerate
Page 42276 shall be dated the date of such Interest Determination
Date, under the column titled "RATE" in the row titled "TWO-YEAR"
on the Interest Determination Date with respect to such Interest
Reset Date.
(ii) If the rates set forth above are not displayed on
Telerate Page 42276 by 3:00 p.m., New York City time on such
Interest Determination Date, then the Two-Year Swap Rate shall
be the average, as calculated by the Reference Agent, of the two
rates displayed on Telerate Page 19901 at 3:30 p.m., New York
City time, under the column titled "BOND SA 365" in the row
titled "2Y".
(iii) If the quotations specificed in clause (ii) above are
not displayed on Telerate Page 19901 at 3:30 p.m. New York City
time on such Interest Determination Date, then the Two-Year Swap
Rate shall be the sum of (a) the average, as determined by the
Reference Agent, of the Pay Fix and Pay Floating Spreads (which
are expressed as basis points, with 100 basis points equaling
1.00 per centage point) as displayed on Reuters Page FPRI under
the column titled "TREASURY VS LIBOR PAY FIX PAY FLTG" and in the
row titled "2YR" as of 3:45 p.m. New York City time on such
Interest Determination Date, plus (b) a rate determined as of
3:45 p.m. New York City time on such Interest Determination Date
equal to the arithmatic mean of the bid-side yield of the
applicable noncallable fixed rate obligation of the United States
with an original maturity of two years as quoted by three leading
primary United States government securities dealers selected by
the Reference Agent, as calculated by the Reference after
consultation with Ford Credit.
(iv) If the Two-Year Swap Rate cannot be determined as
specified in (iii) above by 4:00 p.m. New York City time on such
Interest Determination Date, then the Two-Year Swap Rate shall be
the arithmetic mean of the rates quoted for two year interest
rate swap transactions by three leading dealers in interest rate
swap transactions as determined by the Reference Agent as of 4:00
p.m. New York City time on such Interest Determination Date.
The Two-Year Swap Rate shall be determined as of each
Interest Determination Date, which shall be two Business Days
prior to the related Interest Reset Date; provided, however, that
if, after attempting to determine the Two-Year Swap Rate pursuant
to clauses (i), (ii), (iii) and (iv) above, the Two-Year Swap
Rate is not determinable for an Interest Determination Date (the
"Original Interest Determination Date"), then such Interest
Determination Date shall be the first Business Day preceding the
Original Interest Determination Date for which the Two-Year Swap
Rate can be determined as provided above. "Telerate Page 42276"
and "Telerate Page 19901" mean, respectively, the display pages
so designated on the Dow Jones Telerate Service (or such other
page as may replace either such page on that service, or such
other service as may be nominated as the information vendor, for
the purpose of displaying the information required to determine
the Two-Year Swap Rate). "Reuters Page FPRI" means the page so
designated on the Reuter Monitor Money Rates Service (or such
other page as may replace that page on that service, or such
other service as may be nominated as the information vendor, for
the purpose of displaying the information required to determine
the Two-Year Swap 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 each 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 Period will be calculated by adding the
Daily Interest Amounts for each day in the Interest Period.
MERRILL LYNCH & CO.
