Published on 6/2/2014 in the Prospect News Investment Grade Daily.
New Issue: Caterpillar Financial prices $1 billion of notes in five-, 10-year tranches
By Aleesia Forni
Virginia Beach, June 2 - Caterpillar Financial Services Corp. priced $1 billion of senior notes (A2/A/A) in tranches due 2019 and 2024 on Monday, according to a market source and a FWP filed with the Securities and Exchange Commission.
The company sold $750 million of 2.1% five-year notes at par to yield Treasuries plus 50 basis points.
A second tranche was $250 million of 3.3% 10-year bonds priced at 80 bps over Treasuries.
The notes sold at 99.713 to yield 3.334%.
Both tranches priced tighter than talk, which was set at the 60 bps area and the 90 bps, area respectively.
Goldman Sachs & Co. and BofA Merrill Lynch were the joint bookrunners for the sale.
The funding arm of heavy equipment maker Caterpillar is based in Nashville, Tenn.
| Issuer: | Caterpillar Financial Services Corp.
|
| Issue: | Medium-term notes, series H
|
| Amount: | $1 billion
|
| Joint bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch
|
| Co-managers: | RBS Securities Inc., SG Americas Securities LLC, BBVA Securities Inc., BNY Mellon Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, The Williams Capital Group LP
|
| Trade date: | June 2
|
| Settlement date: | June 9
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
| Distribution: | SEC-registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | June 9, 2019
|
| Coupon: | 2.1%
|
| Price: | Par
|
| Yield: | 2.1%
|
| Spread: | Treasuries plus 50 bps
|
| Price talk: | Treasuries plus 60 bps area
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | June 9, 2024
|
| Coupon: | 3.3%
|
| Price: | 99.713
|
| Yield: | 3.334%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 90 bps area
|
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