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Caterpillar Financial Services Corporation, a subsidiary of the industrial giant Caterpillar Inc (NYSE:CAT)., has announced the issuance of $900 million in aggregate principal amount of its Medium-Term Notes, Series K, due in 2028. The issue consists of two types of notes: $450 million of Floating Rate Notes and $450 million of 4.400% Fixed Rate Notes, both maturing in 2028.
The offering was made pursuant to the company’s Registration Statement and related Prospectus and Pricing Supplements. The Floating Rate Notes and the Fixed Rate Notes were priced on February 25, 2025, and the transaction was completed on Monday.
The legal opinion regarding the issuance was provided by Sidley Austin LLP, confirming the legality of the notes. The proceeds from the note offerings are expected to be used for general corporate purposes.
This financial move comes as part of Caterpillar Financial’s broader strategy to manage its debt portfolio and finance its operations effectively. The issuance aligns with the company’s plans to maintain a strong balance sheet and support its long-term growth objectives.
Investors can find the notes listed on the New York Stock Exchange under the symbol CAT/29. Caterpillar Financial, headquartered in Nashville, Tennessee, is known for providing a variety of financing alternatives to customers and dealers for Caterpillar machinery and engines, Solar gas turbines, and other related equipment and services.
This report is based on a press release statement and provides investors with the latest information regarding Caterpillar Financial’s financial maneuvers. The company’s choice to split the issuance between floating and fixed-rate notes indicates a strategic approach to attracting a diverse set of investors while mitigating interest rate risk.
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