Caterpillar signs 364-day $3.05 billion facility, extends two others

By Wendy Van Sickle

Columbus, Ohio, Sept. 14 – Caterpillar Inc. entered into a 364-day $3.05 billion revolving credit agreement on Sept. 8 and extended the maturities of two existing credit agreements, according to an 8-K filed with the Securities and Exchange Commission.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and J.P. Morgan Securities LLC acted as joint lead arrangers and joint bookrunners in the 364-day facility. Citibank, NA is administrative agent.

Borrowing costs are linked to Caterpillar’s credit default swap costs.

The agreement includes an addendum that permits subsidiary Caterpillar International Finance Ltd. to borrow up to the equivalent of $100 million in pounds sterling and euros and subsidiary Caterpillar Finance Kabushiki Kaisha to borrow up to $100 million in Japanese yen.

The agreement expires Sept. 7, 2017.

The amendments extended the maturity of Caterpillar’s facility originally provided under a 2010 credit agreement to Sept. 10, 2019 and that of the facility originally provided under a 2011 credit agreement to Sept. 10, 2021. They had previously been extended to Sept. 10, 2018 and Sept. 10, 2020, respectively.

The undrawn credit facilities are available for general corporate purposes.

Under the credit agreements, Caterpillar is required to maintain consolidated net worth not less than $9 billion at all times. Caterpillar Financial is required to maintain an interest coverage ratio above 1.15 to 1 and a leverage ratio below 10 to 1, calculated on a monthly basis.

Caterpillar is a heavy equipment maker based in Peoria, Ill.

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