Summary
Caterpillar Inc. (CAT) announced on September 17, 2012, that it, along with its subsidiaries Caterpillar Financial Services Corporation, Caterpillar International Finance Limited, and Caterpillar Finance Corporation, entered into new and amended credit facilities. The company secured a new US$3 billion unsecured 364-day revolving credit facility, which matures on September 12, 2013. This new facility includes provisions for local currency borrowings up to US$100 million each for European and Japanese subsidiaries. Additionally, Caterpillar amended and extended two existing credit agreements. The four-year credit facility, originally dated September 10, 2010, has been extended to mature on September 15, 2015. The five-year credit facility, originally dated September 15, 2011, has been extended to mature on September 15, 2017. These amendments also align certain terms with the new 364-day facility. The company has not drawn on these credit facilities, which are available for general corporate purposes and are subject to financial covenants for both Caterpillar and Cat Financial.
Key Highlights
- 1Caterpillar secured a new US$3 billion unsecured 364-day revolving credit facility.
- 2The new credit facility matures on September 12, 2013.
- 3The company extended its existing four-year credit facility to mature on September 15, 2015.
- 4The company extended its existing five-year credit facility to mature on September 15, 2017.
- 5The credit facilities include provisions for local currency borrowings, up to US$100 million each in Euro and Japanese Yen.
- 6The facilities are available for general corporate purposes and have not been drawn upon.
- 7Key financial covenants include Caterpillar maintaining a consolidated net worth of at least US$9 billion, and Cat Financial maintaining specific interest coverage and leverage ratios.