CNH Industrial takes in tenders for €800 million of two note series

By Susanna Moon

Chicago, Sept. 8 – CNH Industrial NV and subsidiary CNH Industrial Finance Europe SA said they accepted tenders for €800 million of two note series in the offer that ended at 11 a.m. ET on Sept. 7.

As announced Aug. 31, the companies were originally tendering for up to €650 million of three series of notes.

The tender results with the accepted amounts are as follows:

• €347.27 million of the €1.2 billion 6¼% notes due March 9, 2018 using a proration factor of 66.611% with a price of 103.178% using a purchase yield of negative 0.25% and assuming a settlement date of Sept. 12 plus 3.202% of accrued interest; and

• €452.73 million of the €1 billion 2¾% notes due March 18, 2019 with a price of 104.316% using a purchase yield of negative 0.1% and assuming a settlement date of Sept. 12 plus 1.341% of accrued interest.

The companies also had been tendering for the €700 million 2 7/8% notes due Sept. 27, 2021, but none of those notes will be purchased in the offer.

After settlement, there will be €852.73 million of the 2018 notes and €547.27 million of the 2019 notes left outstanding.

The notes were issued by the finance subsidiary and guaranteed by CNH Industrial, the parent.

Holders also will receive accrued interest.

CNH was making the offers “as a way of managing the group's financial liabilities and cost of debt financing,” according to a previous announcement by CNH Industrial Finance Europe SA.

Funding for the purchases will come from cash on hand.

The company said it will determine the allocation of the amount accepted for purchase under the offers among the 2018 motes, the 2019 notes and the 2021 notes.

Tender instructions must be submitted for a minimum denomination of €100,000 and in integrals of €1,000 after that.

Settlement has been set for Sept. 12.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com), BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com), Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com), Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com) and Societe Generale (+44 20 7676 7680 or liability.management@sgcib.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or cnh@lucid-is.com) is the tender agent.

CNH is a Basildon, England, manufacturer of machinery and vehicles.

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