Published on 6/11/2015 in the Prospect News Investment Grade Daily.
New Issue: Caterpillar prices upsized $800 million of notes in two-, three-year tranches
By Aleesia Forni
Virginia Beach, June 11 – Caterpillar Financial Services Corp. priced an upsized $800 million of senior notes (A2/A/A) on Thursday in two tranches, according to two FWP filings with the Securities and Exchange Commission.
The company sold a $300 million floating-rate note due 2017 at par to yield Libor plus 17 basis points.
The notes sold at the tight end of price talk set in the Libor plus 20 bps area.
There was also a $500 million 1.7% note due 2018 sold at 99.991 to yield 1.703%, or Treasuries plus 60 bps.
Pricing was at the tight end of the Treasuries plus 65 bps area talk.
The size of the combined tranches was increased from a planned $750 million.
Proceeds will be used for general corporate purposes.
The bookrunners were BofA Merrill Lynch and J.P. Morgan Securities LLC.
The funding arm of heavy equipment maker Caterpillar is based in Nashville, Tenn.
| Issuer: | Caterpillar Financial Services Corp.
|
| Issue: | Senior medium-term notes, series H
|
| Amount: | $800 million, upsized from $750 million
|
| Joint bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Co-managers: | ANZ Securities, Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Lloyds Securities Inc., MUFG, Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc., Williams Capital Group, LP
|
| Trade date: | June 11
|
| Settlement date: | June 16
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $300 million
|
| Maturity: | June 9, 2017
|
| Coupon: | Libor plus 17 bps
|
| Price: | Par
|
| Yield: | Libor plus 17 bps
|
| Price guidance: | Libor plus 20 bps area
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | June 16, 2018
|
| Coupon: | 1.7%
|
| Price: | 99.991
|
| Yield: | 1.703%
|
| Spread: | Treasuries plus 60 bps
|
| Price guidance: | Treasuries plus 65 bps area
|
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