CNH Industrial Completes $500M Private Note Offering - Analyst Blog

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CNH Industrial N.V. ( CNHI ), 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 becomes due.

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. ( CTB ), Fox Factory Holding Corp. ( FOXF ) and Gentherm Inc. ( THRM ). Each of these stocks sports a Zacks Rank #1 (Strong Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CNHI , CTB , THRM , FOXF

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