CNH Industrial N.V.
), a global leader in capital goods, recently announced the
completion of a $500 million private note offering. The notes were
issued by CNH Industrial Capital LLC, the North American arm of CNH
Industrial's global financial services business.
The 3.375% notes were issued at a price of 99.426%. The offering,
announced last week, will pay interest semi-annually on Jan 15 and
Jul 15 of each year, with the first payment due on Jan 15, 2015.
The notes will mature on Jul 15, 2019.
The notes, which are senior unsecured obligations of CNH Industrial
Capital LLC, will be guaranteed by CNH Industrial Capital America
LLC and New Holland Credit Company, LLC, each a wholly owned
subsidiary of CNH Industrial Capital LLC.
After accounting for offering-related expenses, the net proceeds
came to approximately $492.3 million.
The proceeds will be used to meet the ongoing working capital needs
of the company along with general corporate purposes, including the
purchase of receivables or other assets. The proceeds may also be
employed for debt repayment of CNH Industrial Capital LLC as it
CNH Industrial had $4.0 billion of net industrial debt on its
balance sheet as of Mar 31, 2014. Last month, the company issued
asset-backed securities worth nearly $1 billion. Presently, the
company is rated below investment grade, with a Ba1 rating assigned
by leading credit rating agency Moody's Investors Service.
CNH Industrial currently holds a Zacks rank #3 (Hold). Stocks in
the sector that look promising include
Cooper Tire & Rubber Co.
Fox Factory Holding Corp.
). Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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CNH INDUSTRIAL (CNHI): Free Stock Analysis
COOPER TIRE (CTB): Free Stock Analysis Report
GENTHERM INC (THRM): Free Stock Analysis Report
FOX FACTORY HLD (FOXF): Free Stock Analysis
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