_______________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: December 16, 1998
(Date of earliest event reported)
JOHN DEERE CAPITAL CORPORATION
(Exact name of registrant as specified in charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-6458
(Commission File Number)
36-2386361
(IRS Employer Identification No.)
Suite 600
First Interstate Bank Building
1 East First Street
Reno, Nevada 89501
(Address of principal executive offices and zip code)
(702) 786-5527
(Registrant's telephone number, including area code)
_______________________________________
(Former name or former address, if changed since last report.)
_______________________________________________________________
Item 5. Other Information Events.
On 16 December 1998, John Deere Capital Corporation ("JDCC"), a
unit of John Deere Credit, and Lombard North Central PLC
("Lombard"), the finance house subsidiary of NatWest Group
("NatWest"), announced that they have reached agreement for
JDCC to acquire the 50 per cent share held by Lombard's
agricultural finance subsidiary, Farming and Agricultural
Finance ("FAF"), in John Deere Credit Limited ("JDCL").
JDCL is a joint venture agricultural machinery finance
business, established in 1996, providing primarily term finance
for the acquisition of John Deere and other agricultural-
related equipment. JDCL had net assets of 15 million pounds and
customer receivables of 110 million pounds as at 30 September
1997, the date of its latest available audited accounts. As of
30 September 1998, it had customer receivables of 140 million
pounds (unaudited).
As part of the agreement, JDCL will also take over FAF's
machinery finance portfolio and provide an administration
service in respect of the FAF lease portfolio. FAF will
withdraw from the agricultural equipment financing market to
concentrate on other products. JDCL's subsidiary, Growcash
Limited ("Growcash"), which provides seasonal working capital
for farmers, will remain a joint venture until March 2000 but
no new loans will be made after 31 March 1999 by which time
NatWest will have discussed alternative forms of short-term
financing with Growcash customers.
The transaction is expected to be completed by early February
1999. As a result of this transaction, it is estimated that
JDCC's consolidated assets will increase by approximately
US$500 million.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(c) Exhibits
(99) Press release
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Signature
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereto duly authorized.
JOHN DEERE CAPITAL CORPORATION
By: /s/ Frank S. Cottrell
Frank S. Cottrell, Secretary
Dated: December 16, 1998
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Exhibit Index
Sequential
Number and Description of Exhibit Page Number
_________________________________ ___________
(99) Press release 5
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EXHIBIT 99
(JOHN DEERE CREDIT LOGO) (LOMBARD LOGO)
John Deere Capital Corporation ("JDCC"), a unit of John Deere
Credit, and Lombard North Central PLC ("Lombard"), the finance
house subsidiary of NatWest Group ("NatWest"), announced today
(16 December 1998) that they have reached agreement for JDCC to
acquire the 50 per cent share held by Lombard's agricultural
finance subsidiary, Farming and Agricultural Finance ("FAF"),
in John Deere Credit Limited ("JDCL").
JDCL is a joint venture agricultural machinery finance
business, established in 1996, providing primarily term finance
for the acquisition of John Deere and other agricultural
related equipment. It had net assets of 15 million pounds and
customer receivables of 110 million pounds as at 30 September
1997, the date of its latest available audited accounts. As of
30 September 1998, it had customer receivables of 140 million
pounds (unaudited).
The transaction is expected to be completed by early February
1999 and will not have a material effect on NatWest Group's
financial results.
As part of the agreement, JDCL will also take over FAF's
machinery finance portfolio and provide an administration
service in respect of the FAF lease portfolio. FAF will
withdraw from the agricultural equipment financing market to
concentrate on other products. FAF's mortgage products, Farm
Capital, Country Capital and Grounds Capital, will not be
affected by the transaction and will continue to be available.
JDCL's subsidiary, Growcash Limited ("Growcash"), which
provides seasonal working capital for farmers, will remain a
joint venture until March 2000 but no new loans will be made
after 31 March 1999 by which time NatWest will have discussed
alternative forms of short-term financing with Growcash
customers.
The sale of this business is in line with NatWest's overall
strategy of concentrating on developing sustained multi-product
relationships direct with its customers rather than through
third parties. It follows the announcement made by NatWest on
18 November 1998 in connection with the sale of three of
Lombard's point of sale finance businesses.
Steve Pullin, Vice President of International Financing JDCC
said: "We strongly believe that, with our long experience in
financing machinery and equipment, we bring many positive
strengths to this market for both our current and future
customers. With our parent company's 160 years experience in
the agriculture equipment markets, John Deere Credit has an
extensive understanding of farmer needs and the cyclical
environment."
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Peter Ibbetson, Head of NatWest Small Business Services added:
"NatWest has offered machinery finance direct to customers for
many years and this will continue to be available. NatWest is
one of the largest providers of financial support to the
agricultural sector. We understand the issues that the sector
is currently facing and have around 150 specialist Agricultural
Business Managers who have a wealth of experience to advise our
37,000 agricultural customers."
Notes to the Editors:
John Deere
John Deere Credit (the credit operations of Deere & Company)
provides retail, wholesale, and lease financing for
agricultural, construction, commercial and consumer equipment.
It is one of the largest financing companies in North America
with a managed asset portfolio approaching U.S.$10 billion. The
company also provides revolving credit for agricultural
supplies and services. Today, in addition to its operations in
the United Kingdom, John Deere Credit has operations in
Australia, Canada, Germany, Mexico, and the United States.
With its parent company's 160-years of experience in the
agricultural equipment markets, John Deere Credit has an
extensive understanding of farmer needs and the cyclical
business environment. Today, a customer support philosophy
encouraging world class quality service continues to build on
that tradition.
Deere & Company, with over 35,500 employees, manufactures
products in 11 countries and markets products in more than 160
countries. Deere & Company and its subsidiaries manufacture,
distribute and finance a full range of agricultural equipment;
a broad range of equipment for construction, forestry and
public works; and a variety of commercial and consumer
equipment. In addition to credit, the company also provides
health care and insurance products for businesses and the
general public.
Farming and Agricultural Finance Limited (FAF)
FAF, a wholly owned subsidiary of Lombard, is an agricultural
and rural community finance company which also provides
mortgages to farmers and the grounds-care industry.
NatWest
NatWest is one of the market leading banks in the UK
agricultural sector. It manages a portfolio of more than 37,000
agricultural business accounts through a network of more than
150 specialists Agricultural Business Managers.
NatWest has developed a number of specific lending schemes for
farming businesses including the NatWest Agricultural Mortgage,
Farm Development Loan, Dairy Development Loan, and
Environmental Improvement Loan.
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NatWest has a joint venture with the National Farmers' Union
whereby NatWest underwrites the NFU Mutual Agricultural
Mortgage product and NFUM offers farm insurance cover for
NatWest's farming customers.
Enquiries to:
NatWest Group
Ben Woodford/Steve Colton Christina Mills
Tel: 0171-726-1941 Tel: 0171 920 5010
Lombard
Beverly Landais
Tel: 01737 776676
John Deere Credit
Stephen Parkes Gordon Tjelmeland
JDCL JDC USA
01452 375190 001-515-267-4345
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