CNH Industrial Capital Canada Secures Cdn$300 Million Notes

CNH Industrial Capital Canada’s Latest Financial Move

In a significant financial development, CNH Industrial N.V. (NYSE: CNH) has informed stakeholders about its indirect wholly owned subsidiary, CNH Industrial Capital Canada Ltd. The company has successfully priced a noteworthy offering of Cdn$300 million in aggregate principal amount of 4.00% notes which are set to mature on April 11, 2028. This strategic financial maneuver is pivotal in bolstering CNH Industrial’s position in the market.

Details of the Note Offering

The pricing of these notes was executed with an issue price of 99.964%. They are being offered through a private placement to select accredited investors across various Canadian provinces. This offering is intended to close under customary conditions. The completion of this offering is expected shortly, which showcases the confidence in CNH Industrial’s financial health and operational strategies.

Usage of Proceeds

CNH Industrial Capital Canada Ltd. has outlined clear intentions regarding the utilization of the net proceeds from this offering. The funds raised will be directed towards working capital and other general corporate purposes. This includes purchasing receivables and repaying existing debt as it comes due. By strategically using the proceeds, the company aims to enhance its financial flexibility and operational capacity.

Notes Specifications

The notes represent senior unsecured obligations, meaning they are a priority for repayment in the event of financial distress. Interest on these notes will be paid semi-annually, beginning on April 11, 2025. The company’s subsidiaries, including CNH Industrial Capital LLC, CNH Industrial Capital America LLC, and New Holland Credit Company, LLC, are guaranteeing these notes, reflecting strong backing from its corporate structure.

Regulatory Compliance and Offering Conditions

Importantly, the securities involved in this private placement have not been registered under Canadian securities laws, nor under the U.S. Securities Act of 1933. This means that they cannot be sold publicly without appropriate registration. Investors should be aware that further offers or sales of the notes will only occur in compliance with relevant laws.

The Role of CNH Industrial Capital LLC

CNH Industrial Capital LLC plays a crucial role in the financial ecosystem of CNH Industrial. As an indirect wholly owned subsidiary, it specializes in providing financing options to customers and dealerships associated with CNH Industrial America LLC and CNH Industrial Canada Ltd. This includes not only supporting sales through financing but also managing wholesaling and retail financing for agricultural and construction equipment, ensuring continuous business operations.

The Significance of This Offering

This latest bond pricing is critical for CNH Industrial Capital Canada Ltd., as it augments its financial strength and flexibility. It reflects the company’s proactive approach to securing funding for growth opportunities and operational necessities. Investors are likely to view this move favorably, considering the stable interest payment structure and the backing by reputable subsidiaries.

Frequently Asked Questions

What is the amount raised by CNH Industrial Capital Canada Ltd.?

CNH Industrial Capital Canada Ltd. has priced Cdn$300 million in notes.

What is the interest rate for the notes issued?

The notes carry an interest rate of 4.00% with payment made semi-annually.

When will the notes mature?

The notes are due for maturity on April 11, 2028.

Can these securities be offered publicly?

No, the securities are not qualified for public sale under applicable laws in Canada and cannot be sold without proper registration.

What is CNH Industrial Capital LLC's role?

CNH Industrial Capital LLC underwrites and manages financing products for CNH Industrial customers and dealers.

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