Summary
Caterpillar Inc. (CAT) announced on September 3, 2025, via an 8-K filing, significant updates to its revolving credit facilities. The company has entered into a new $3.5 billion, 364-day unsecured revolving credit facility, replacing its prior facility and providing flexibility for short-term funding needs. This new facility includes provisions for borrowing in Pounds Sterling and Euros up to $100 million, and in Japanese Yen up to $100 million, through specific subsidiaries. Furthermore, Caterpillar has amended and restated its existing three-year and five-year credit agreements. The three-year facility has been extended to mature in August 2028 with a $3.0 billion commitment, while the five-year facility is now set to mature in August 2030 with a $5.0 billion commitment. These credit facilities are unsecured and available for general corporate purposes, underscoring Caterpillar's ongoing commitment to maintaining robust liquidity and financial flexibility.
Key Highlights
- 1Entered into a new $3.5 billion, 364-day unsecured revolving credit facility expiring August 27, 2026.
- 2New 364-day facility includes provisions for foreign currency borrowings (GBP, EUR, JPY) up to an equivalent of $200 million.
- 3Amended and restated the three-year credit facility, extending its maturity to August 28, 2028, with a $3.0 billion commitment.
- 4Amended and restated the five-year credit facility, extending its maturity to August 28, 2030, with a $5.0 billion commitment.
- 5Total committed credit facilities now stand at $11.5 billion ($3.5B + $3.0B + $5.0B).
- 6Credit facilities are unsecured and available for general corporate purposes.
- 7Key financial covenants include a minimum consolidated net worth of $9 billion for Caterpillar and specific ratios (interest coverage and leverage) for Caterpillar Financial Services Corporation.