8-KMaterial AgreementsFinancial EventsExhibits & Filings

CATERPILLAR INC 8-K Report, Material Agreement (Sep 6, 2022)

Filed September 6, 2022For Securities:CAT

Summary

Caterpillar Inc. (CAT) has filed an 8-K report detailing the creation and amendment of its credit facilities, signaling a proactive approach to its financial flexibility and liquidity. The company has entered into a new $3.15 billion 364-day revolving credit facility, replacing its previous agreement, and has also amended and extended its existing three-year and five-year credit facilities. These new and extended facilities provide Caterpillar and its subsidiaries access to significant capital for general corporate purposes, with maturity dates extending to August 2025 and September 2027, respectively.

Key Highlights

  • 1Caterpillar established a new $3.15 billion unsecured revolving credit facility maturing on August 31, 2023.
  • 2The company amended and extended its existing three-year credit facility to mature on August 29, 2025.
  • 3Caterpillar also amended and extended its existing five-year credit facility to mature on September 1, 2027.
  • 4The credit facilities are available for general corporate purposes and no amounts have been drawn as of the filing date.
  • 5Key financial covenants include maintaining a consolidated net worth of at least $9 billion for Caterpillar.
  • 6Cat Financial must maintain an interest coverage ratio above 1.15 to 1 and a leverage ratio not greater than 10.0 to 1.

Frequently Asked Questions

The new 364-day revolving credit facility has an aggregate commitment of up to $3.15 billion. The three-year and five-year facilities have been extended, providing continued access to credit, though specific aggregate amounts for these extended facilities are not detailed in this summary, they replace existing agreements.

The new 364-day facility expires on August 31, 2023. The amended and restated three-year facility expires on August 29, 2025, and the amended and restated five-year facility expires on September 1, 2027.

Yes, Caterpillar is required to maintain a consolidated net worth of at least $9 billion. Caterpillar Financial Services Corporation must adhere to an interest coverage ratio above 1.15 to 1 and a leverage ratio not exceeding 10.0 to 1.

As of the filing date (September 6, 2022), Caterpillar had not drawn on any of the new or amended credit facilities.