Bloomberg News

Caterpillar Offering $1.5 Billion Dollar-Denominated Debt

May 22, 2012

Caterpillar Inc. (CAT:US), the world’s largest maker of construction equipment, sold $1.5 billion of three-, five- and 10-year bonds, according to data compiled by Bloomberg.

The tractor manufacturer’s financing arm Caterpillar Financial Services Corp. sold equal portions of $500 million of 1.1 percent bonds maturing 2015 that yielded 70 basis points more than similar-maturity Treasuries, 1.625 percent five-year notes with a 90 basis-point spread and 2.85 percent securities due in 2022 to yield 110 basis points more than benchmarks, Bloomberg data show.

The new debt is expected to be graded (CAT:US) A2 by Moody’s Investors Service. Proceeds from the sale will be used for general corporate purposes, according to a person familiar with the offering who declined to be identified citing lack of authorization to speak publicly about the deal.

“In a slow growth environment, CAT should continue to prosper as it cuts costs and achieves modest price increases,” Carol Levenson of Chicago-based Gimme Credit LLC wrote today in a note.

Caterpillar last sold more than $1.5 billion of dollar- denominated debt in May 2011, when the Peoria, Illinois-based equipment maker issued $1.25 billion of 3.9 percent, 10-year notes to yield 85 basis points more than similar-maturity Treasuries and $1.25 billion of 5.2 percent bonds due in 2041 with a 98 basis-point spread, according to data compiled by Bloomberg.

Bank of America Corp. and Citigroup Inc. managed the sale, Bloomberg data show.

To contact the reporter on this story: Charles Mead in New York at

To contact the editor responsible for this story: Alan Goldstein at

China's Killer Profits

Companies Mentioned

  • CAT
    (Caterpillar Inc)
    • $91.69 USD
    • 1.94
    • 2.12%
Market data is delayed at least 15 minutes.
blog comments powered by Disqus