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Pursuant to Rule 424(b)3
Registration No. 33-53101
PRICING SUPPLEMENT NO. 1 DATED OCTOBER 27, 1994
(TO PROSPECTUS AND PROSPECTUS SUPPLEMENT DATED MAY 4, 1994)
(LOGO)
U.S. $6,000,000,000
FORD MOTOR CREDIT COMPANY
EURO MEDIUM-TERM NOTES DUE FROM 9 MONTHS TO
30 YEARS FROM DATE OF ISSUE
Ford Motor Credit Company ("Ford Credit") has designated U.S. $250,000,000
aggregate principal amount of its Euro Medium-Term Notes Due from 9 Months to 30
Years from Date of Issue having the specific terms set forth below. The Managers
have severally agreed to purchase the Notes at a price of 99.582% of the
principal amount for resale at an initial public offering price of 99.757% of
the principal amount. After the initial public offering, the public 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: November 2, 1994
PRINCIPAL AMOUNT: U.S. $250,000,000 Floating Rate Notes Due November 2,
1999
STATED MATURITY: November 2, 1999.
INTEREST RATE AND PAYMENT: The Notes will bear interest from November 2,
1994, at the Interest Rate determined in the manner set forth below, payable
quarterly on February 2, May 2, August 2 and November 2, during the period
commencing with February 2, 1995 and ending with August 2, 1999 (each such date
an "Interest Payment Date") and on the Stated Maturity.
The per annum interest rate (the "Interest Rate") in effect for each day of
an Interest Period will be equal to the Three Month LIBOR Rate plus 20 basis
points (0.20%). The Interest Rate for each Interest Period will be set on the
2nd day of the months of February, May, August and November during the period
commencing with November 2, 1994 and ending with August 2, 1999 (each such day
an "Interest Reset Date"). "Interest Period" shall mean the period from and
including an Interest Reset Date, or in the case of the first such period,
November 2, 1994, to but excluding the next succeeding Interest Reset Date and
in the case of the last such period, August 2, 1999 to and including November 1,
1999. No adjustment will be made to the length of an Interest Period if an
Interest Reset Date falls on a day that is not a Business Day.
GOLDMAN SACHS INTERNATIONAL
BANQUE PARIBAS
DEUTSCHE BANK AG LONDON
LEHMAN BROTHERS INTERNATIONAL (EUROPE)
MERRILL LYNCH INTERNATIONAL LIMITED
MIDLAND BANK PLC
J.P. MORGAN SECURITIES LTD.
MORGAN STANLEY & CO. INTERNATIONAL LIMITED
SALOMON BROTHERS INTERNATIONAL LIMITED
UBS LIMITED
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The "Three Month LIBOR Rate" shall mean the rate determined in accordance
with the following provisions:
(i) On the second day on which dealings in deposits in U.S. dollars
are transacted in the London interbank market preceding the Issue Date and
each Interest Reset Date (each such date an "Interest Determination Date"),
Chemical Bank (the "Reference Agent"), as agent for Ford Credit, will
determine the Three Month LIBOR Rate which shall be the rate for deposits
in U.S. dollars having a three-month maturity which appears on Telerate
Page 3750 as of 11:00 a.m., London time, on such Interest Determination
Date. "Telerate Page 3750" means the display page so designated on the Dow
Jones Telerate Service (or such other page as may replace that page on that
service or such other service or services as may be nominated by the
British Bankers' Association for the purpose of displaying London interbank
offered rates for U.S. dollar deposits). If the Three-Month LIBOR Rate on
such Interest Determination Date does not appear on Telerate Page 3750,
such Three-Month LIBOR Rate will be determined as described in (ii) below.
(ii) With respect to an Interest Determination Date for which the
Three-Month LIBOR Rate does not appear on the Telerate Page 3750 as
specified in (i) above, the Three Month LIBOR Rate will be determined on
the basis of the rates at which deposits in U.S. dollars are offered by
four major banks in the London interbank market selected by the Reference
Agent (the "Reference Banks") at approximately 11:00 a.m., London time, on
such Interest Determination Date to prime banks in the London interbank
market having a three-month maturity and in a principal amount equal to an
amount of not less than U.S.$1,000,000 that is representative for a single
transaction in such market at such time. The Reference Agent will request
the principal London office of each of such Reference Banks to provide a
quotation of its rate. If at least two such quotations are provided, the
Three Month LIBOR Rate on such Interest Determination Date will be the
arithmetic mean (rounded upwards, if necessary, to the nearest one
hundred-thousandth of a percentage point, with 5 one-millionths of a
percentage point rounded upward) of such quotations. If fewer than two
quotations are provided, the Three Month LIBOR Rate on such Interest
Determination Date will be the arithmetic mean (rounded upwards, if
necessary, to the nearest one hundred-thousandth of a percentage point,
with 5 one-millionths of a percentage point rounded upward) of the rates
quoted by three major banks in New York City selected by the Reference
Agent at approximately 11:00 a.m., New York City time, on such Interest
Determination Date for loans in U.S. dollars to leading European banks,
having a three-month maturity and in a principal amount equal to an amount
of not less than U.S.$1,000,000 that is representative for a single
transaction in such market at such time; provided, however, that if the
banks in New York City selected as aforesaid by the Reference Agent are not
quoting as mentioned in this sentence, the Interest Rate for the Interest
Period commencing on the Interest Reset Date following such Interest
Determination Date will be the Interest Rate in effect on such Interest
Determination Date.
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
Period will be calculated by adding the Daily Interest Amounts for each day in
the Interest Period. The Interest Rate and amount of interest to be paid for
each Interest Period will be determined by the Reference Agent.
In any case in which the Stated Maturity or an Interest Payment Date is not
a Business Day, payment of principal and/or interest, as the case may be, shall
be made on the next succeeding Business Day with the same force and effect as if
made on such Interest Payment Date or at Stated Maturity, 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 or the City of London, is not a day on which banking
institutions are generally authorized or obligated by law to close.
Notwithstanding any provision to the contrary in the Prospectus Supplement,
interests in the Permanent Global Note representing the Notes will be
exchangeable in whole for Definitive Notes in bearer form only in the following
limited circumstances: (i) if the Permanent Global Note is held on behalf of
Euroclear or Cedel S.A. and either of such clearing systems is closed for
business for a continuous period of 14 days (other than by reason of holidays,
statutory or otherwise) or announces an intention permanently to cease business
or in fact does so or (ii) if an Event of Default occurs in relation to the
Notes.
REDEMPTION: The Notes may not be redeemed before the Interest Payment Date
occurring on November 2, 1996. On such Interest Payment Date and any Interest
Payment Date thereafter, the Notes may be redeemed, as a whole but not in part,
at the option of Ford Credit, on not less than 30 nor more than 60 days prior
notice given in the manner provided in the Prospectus Supplement under the
caption "Description of Notes -- Notices" and in the Indenture, at a Redemption
Price equal to 100% of the principal amount of the Notes to be redeemed,
together with interest thereon payable to the Redemption Date. The Notes also
may be redeemed as provided in the Prospectus Supplement under the captions
"Description of Notes -- Redemption" and "Description of Notes -- Mandatory
Redemption".
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FORD CREDIT THIRD QUARTER 1994 RESULTS OF OPERATIONS
Ford Credit's consolidated net income for the third quarter of 1994 was
$315 million, up $40 million or 15% compared with $275 million in the third
quarter of 1993. Income from financing operations was $254 million, up $32
million or 14% from the same period a year ago. Equity in net income of
affiliated companies, primarily Ford Holdings, Inc., was $61 million compared
with $53 million in the same period a year ago.
Compared with results from a year ago, financing profits in the third
quarter of 1994 primarily reflected a higher level of earning assets, lower
credit losses, and non-recurrence of the effect of the 1993 U.S. tax rate
increase, partially offset by lower net interest margins and the non-recurrence
of a gain from the sale of receivables. The higher level of earning assets
reflected increases in operating leases, retail installment sale receivables,
and wholesale financing. Lower credit losses primarily reflected the continuing
trend of favorable credit loss experience and lower losses per repossessed unit.
The lower net interest margins primarily reflected the effect of higher
borrowing costs as well as lower interest rates on finance receivables and
operating leases.
Total gross finance receivables and net investment in operating leases at
September 30, 1994 were $79.7 billion, up $13.9 billion or 21% from a year
earlier. The increase primarily reflected higher levels of operating leases,
retail installment sale receivables, and wholesale receivables. Depreciation
expense on operating leases in the third quarter of 1994 was $1,039 million, up
$317 million or 44% compared with the third quarter of 1993. The increase
reflected the higher levels of operating leases and was more than offset by
higher revenue earned from the increased volume of lease contracts.
During the third quarter of 1994, Ford Credit financed 36.7% of all new
cars and trucks sold by Ford Motor Company dealers in the United States,
compared with 37.5% in the third quarter of 1993. The decrease primarily
resulted from lower levels of retail installment sale financing. Ford Credit
provided retail financing for 592,000 new and used vehicles in the United
States, up 2% from a year ago. Ford Credit also provided wholesale financing for
83.4% of Ford Motor Company factory sales to U.S. car and truck dealers during
the quarter, compared with 82.7% in the same period a year ago.
FORD CREDIT FIRST NINE MONTHS 1994 RESULTS OF OPERATIONS
For the first nine months of 1994, Ford Credit's consolidated net income
was $982 million, up $86 million or 10% from $896 million in the first nine
months of 1993. Income from financing operations was $816 million, up $60
million or 8% from the same period a year ago. Equity in net income of
affiliated companies was $166 million compared with $140 million in 1993. The
improvement in financing profits primarily resulted from higher levels of
earning assets, lower credit losses, the non-recurrence of the effect of the
1993 U.S. tax rate increase and a one-time gain from the sale of Ford Credit's
investment in Manheim Auctions, Inc., partially offset by lower net interest
margins, and lower gains from sales of receivables. Depreciation expense in the
first nine months of 1994 was $2,784 million, up $879 million or 46% compared
with the first nine months of 1993. The increase reflected the higher levels of
operating leases and was more than offset by higher revenue earned from the
increased volume of lease contracts. During the first nine months of 1994, Ford
Credit provided retail financing for 37.0% of all new cars and trucks sold by
Ford Motor Company dealers in the United States, compared with 38.1% in the same
period a year ago. Ford Credit provided U.S. retail financing for 1,802,000 new
and used vehicles compared with 1,679,000 vehicles in the first nine months of
1993. Ford Credit also provided wholesale financing for 81.7% of Ford Motor
Company factory sales to U.S. car and truck dealers during the first nine months
of 1994, compared with 81.2% in the same period last year.
FORD MOTOR COMPANY THIRD QUARTER 1994 RESULTS OF OPERATIONS
Ford Motor Company earned $1,124 million in the third quarter of 1994,
compared with earnings in the third quarter of 1993 of $463 million, which
included a favorable one-time effect of $140 million because of new U.S. tax
legislation. Worldwide sales and revenues were $30.6 billion in the third
quarter of 1994, compared with $24.5 billion in the third quarter a year ago.
Worldwide factory unit sales of cars and trucks were 1,526,000, up 220,000 units
or 17% from last year's third quarter.
Earnings from Automotive operations and Financial Services operations in
the third quarter of 1994 were $601 million and $523 million, respectively,
compared with results from the third quarter a year ago of $72 million and $391
million, respectively.
Automotive cash and marketable securities were $13.9 billion at September
30, 1994, compared with $9.3 billion at such date last year. Automotive debt was
$7.2 billion at September 30, 1994, compared with $7.9 billion at September 30
last year. Capital spending in the third quarter of 1994 was $2.5 billion,
compared with $1.8 billion in the third quarter of 1993.
