Summary
Caterpillar Inc. (CAT) has announced the redemption of its entire $250,000,000 issue of 6% Debentures due May 1, 2007. This redemption, scheduled for August 16, 2003, will occur at 100% of the par value, plus any accrued interest. The company intends to use available cash or low-interest commercial paper, or a combination of both, to fund this repayment. This action demonstrates Caterpillar's proactive approach to managing its capital structure by retiring higher-interest debt. Investors should note this event as it impacts the company's outstanding debt obligations and potentially its leverage ratios. The process for bondholders to receive their payment involves surrendering the debentures to Citibank, N.A., the Trustee.
Key Highlights
- 1Caterpillar Inc. is redeeming its $250 million issue of 6% Debentures.
- 2The redemption date is set for August 16, 2003.
- 3The debentures will be redeemed at 100% par value plus accrued interest.
- 4The purpose of the redemption is to retire high-interest debt.
- 5Caterpillar will fund the redemption using cash, commercial paper, or both.
- 6Citibank, N.A. is acting as the Trustee for the debentures.
- 7This action reflects proactive debt management by Caterpillar.