Summary
This Form 8-K filing by Caterpillar Inc. (CAT) reports on the company's issuance and sale of $1.5 billion in debt securities on December 5, 2008. The issuance consisted of $350 million of 7.000% Notes due 2013, $900 million of 7.900% Notes due 2018, and $250 million of 8.250% Debentures due 2038. These securities were issued under a shelf registration statement and an underwriting agreement with Banc of America Securities LLC and J.P. Morgan Securities Inc. The company is raising significant capital through this debt issuance, which took place during a period of economic uncertainty in late 2008. Investors should note the interest rates and maturity dates for each tranche of debt. The proceeds from this offering will likely be used for general corporate purposes, though the filing does not specify exact use. As unsecured senior indebtedness, these securities rank equally with other existing unsecured debt of Caterpillar.
Key Highlights
- 1Caterpillar Inc. issued and sold $1.5 billion in aggregate principal amount of debt securities on December 5, 2008.
- 2The issuance comprised three tranches: $350 million in 7.000% Notes due 2013, $900 million in 7.900% Notes due 2018, and $250 million in 8.250% Debentures due 2038.
- 3The debt was issued under a shelf registration statement and an underwriting agreement with Banc of America Securities LLC and J.P. Morgan Securities Inc.
- 4Interest on the notes and debentures will be payable semi-annually on June 15 and December 15.
- 5The company retains the option to redeem the securities at any time at a price not less than 100% of the principal amount, or the discounted present value plus a premium.
- 6The issued securities are unsecured and rank equally with other unsecured senior indebtedness of Caterpillar.