Published on 5/12/2020 in the Prospect News Investment Grade Daily.
New Issue: Caterpillar Financial Services prices $2 billion of senior notes in three tranches
By Cristal Cody
Tupelo, Miss., May 12 – Caterpillar Financial Services Corp. priced $2 billion of senior notes (A3/A/A) in three tranches on Tuesday, according to a market source and FWP filings with the Securities and Exchange Commission.
A $300 million tranche of floating-rate notes due May 13, 2022 priced at par to yield Libor plus 73.5 basis points.
The company sold $1.1 billion of 0.95% two-year fixed-rate notes at 99.911 to yield 0.995% and a spread of Treasuries plus 82 bps versus talk at the 105 bps area.
A $600 offering of 1.45% five-year notes priced at 99.794 to yield 1.493%, or a spread of Treasuries plus 115 bps. Initial price talk was in the 135 bps spread area.
BofA Securities, Inc., Citigroup Global Markets Inc. and MUFG were the bookrunners.
Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.
The Deerfield, Ill.-based company manufactures construction and mining equipment, diesel and natural gas engines and other industry equipment.
| Issuer: | Caterpillar Financial Services Corp.
|
| Amount: | $2 billion
|
| Description: | Series J senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc. and MUFG
|
| Co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Lloyds Securities Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Commerz Markets LLC, Loop Capital Markets LLC, Standard Chartered Bank, Mizuho Securities USA LLC, Wells Fargo Securities, LLC, Scotia Capital (USA) Inc., ANZ Securities, Inc., ICBC Standard Bank plc, KBC Securities USA LLC, Mischler Financial Group, Inc., Westpac Capital Markets LLC, BBVA Securities Inc., BNY Mellon Capital Markets, LLC, Itau BBA USA Securities, Inc. and SMBC Nikko Securities America, Inc.
|
| Trade date: | May 12
|
| Settlement date: | May 15
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $300 million
|
| Maturity: | May 13, 2022
|
| Coupon: | Libor plus 73.5 bps
|
| Price: | Par
|
| Yield: | Libor plus 73.5 bps
|
| Call feature: | None
|
|
|
| Two-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | May 13, 2022
|
| Coupon: | 0.95%
|
| Price: | 99.911
|
| Yield: | 0.995%
|
| Spread: | Treasuries plus 82 bps
|
| Call feature: | Make-whole call at price equal to greater of par or Treasuries plus 15 bps
|
| Price guidance: | Treasuries plus 105 bps area
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | May 15, 2025
|
| Coupon: | 1.45%
|
| Price: | 99.794
|
| Yield: | 1.493%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call at price equal to greater of par or Treasuries plus 20 bps
|
| Price guidance: | Treasuries plus 135 bps area
|
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