Published on 5/9/2018 in the Prospect News Investment Grade Daily.
New Issue: Caterpillar Financial Services sells $2 billion of notes in four parts
By Cristal Cody
Tupelo, Miss., May 9 – Caterpillar Financial Services Corp. priced $2 billion of medium-term notes (A3/A/A) in four tranches on Wednesday, according to FWP filings with the Securities and Exchange Commission.
Caterpillar sold $600 million of two-year floating-rate notes at par to yield Libor plus 18 basis points.
The company brought $650 million of 2.95% two-year fixed-rate notes to the market at 99.981 to yield 2.96%, or a spread of Treasuries plus 43 bps.
A $250 million tranche of five-year floating-rate notes priced at par to yield Libor plus 51 bps.
In the final tranche, Caterpillar sold $500 million of 3.45% five-year fixed-rate notes at 99.932 to yield 3.465%, or a Treasuries plus 63 bps spread.
Citigroup Global Markets Inc., BofA Merrill Lynch and MUFG were the bookrunners.
Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.
| Issuer: | Caterpillar Financial Services Corp.
|
| Amount: | $2 billion
|
| Description: | Series I medium-term notes
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch and MUFG
|
| Co-managers: | BBVA Securities Inc., BNY Mellon Capital Markets, LLC, Commerz Markets LLC, Deutsche Bank Securities Inc., ICBC Standard Bank plc, ING Financial Markets LLC, Itau BBA USA Securities, Inc., Lloyds Securities Inc., Loop Capital Markets LLC, Mischler Financial Group, Inc., Scotia Capital (USA) Inc., and Wells Fargo Securities, LLC
|
| Trade date: | May 9
|
| Settlement date: | May 16
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $600 million
|
| Description: | Floating-rate notes
|
| Maturity: | May 15, 2020
|
| Coupon: | Libor plus 18 bps
|
| Price: | Par
|
| Yield: | Libor plus 18 bps
|
| Call features: | None
|
|
|
| Two-year notes
|
| Amount: | $650 million
|
| Description: | Fixed-rate notes
|
| Maturity: | May 15, 2020
|
| Coupon: | 2.95%
|
| Price: | 99.981
|
| Yield: | 2.96%
|
| Spread: | Treasuries plus 43 bps
|
| Call feature: | Any time at greater of par or Treasuries plus 7 bps
|
|
|
| Five-year floaters
|
| Amount: | $250 million
|
| Description: | Floating-rate notes
|
| Maturity: | May 15, 2023
|
| Coupon: | Libor plus 51 bps
|
| Price: | Par
|
| Yield: | Libor plus 51 bps
|
| Call features: | None
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Description: | Fixed-rate notes
|
| Maturity: | May 15, 2023
|
| Coupon: | 3.45%
|
| Price: | 99.932
|
| Yield: | 3.465%
|
| Spread: | Treasuries plus 63 bps
|
| Call feature: | Any time at greater of par or Treasuries plus 10 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
