CNH Industrial subsidiary prices $500 million notes

NEW YORK - CNH Industrial Capital LLC, a wholly owned subsidiary of CNH Industrial N.V. (NYSE:CNH), has priced a $500 million note offering at 4.750% due March 21, 2028. The parent company, with a market capitalization of $16.3 billion, demonstrates strong financial health according to InvestingPro analysis, with liquid assets exceeding short-term obligations and a robust current ratio of 5.11. The notes, priced at 99.658% of the aggregate principal amount, are set to close on March 21, 2025, subject to customary closing conditions.

The proceeds from the offering will bolster the company’s general funds, supporting working capital and other corporate purposes. These may include purchasing receivables and other assets or repaying debt as it matures. With total debt of $27.2 billion as reported by InvestingPro, this offering represents part of the company’s broader financial strategy. The notes, senior unsecured obligations, will be guaranteed by CNH Industrial Capital America LLC and New Holland Credit Company, LLC, and pay interest semi-annually.

BNP Paribas Securities Corp., BofA Securities, Inc., Deutsche Bank Securities Inc., and Goldman Sachs & Co. LLC are the joint book-running managers and representatives of the underwriters. Additional joint book-running managers for the offering include BBVA Securities Inc., Intesa Sanpaolo IMI Securities Corp., SMBC Nikko Securities America, Inc., and UniCredit Capital Markets LLC.

The offering is made through an effective shelf registration statement filed with the U.S. Securities and Exchange Commission on March 12, 2025. Interested parties may obtain copies of the prospectus supplement and the accompanying prospectus from the representatives of the underwriters or from the SEC’s website.

CNH Industrial Capital LLC, headquartered in Racine, Wisconsin, underwrites and manages financing products for CNH Industrial America LLC and CNH Industrial Canada Ltd. customers and dealers. It also provides financial services for the sale of agricultural and construction equipment, including financing for equipment manufactured by other entities. The parent company generated revenues of $19.84 billion in the last twelve months, and according to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks, the company shows strong momentum with a 25% price return over the past six months.

This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities will not occur in any jurisdiction where such an offer, solicitation, or sale would be unlawful.

In other recent news, CNH Global and CNH Industrial have both faced significant developments. CNH Industrial reported a substantial 23% revenue decline in 2024, attributed to a downturn in the agricultural equipment market, with further contractions expected in 2025. S&P Global Ratings revised CNH Industrial’s outlook to negative due to this downturn, although the company’s credit metrics remain supportive. Meanwhile, CFRA analyst Nazmi Ghazali raised the price target for CNH Industrial to $13, despite maintaining a Hold rating, citing ongoing market challenges.

For CNH Global, Citi analyst Kyle Menges increased the stock price target to $15, maintaining a Buy rating, noting effective inventory management and cost-reduction efforts. However, Baird downgraded CNH Global from Outperform to Neutral, reducing the price target to $15, reflecting concerns over near-term growth prospects. DA Davidson also raised CNH Global’s price target to $14 while keeping a Neutral stance, acknowledging the company’s progress in enhancing its cost structure. Despite these challenges, both companies are focused on navigating current market conditions and preparing for potential improvements in the coming years.

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