CNH Industrial announces subsidiary notes offering

Rhea-AI Summary

CNH Industrial N.V. (NYSE: CNHI) announced plans for its subsidiary CNH Industrial Capital LLC to offer new notes, contingent on market conditions. These notes will be guaranteed by its wholly owned subsidiaries, CNH Industrial Capital America LLC and New Holland Credit Company, LLC. Proceeds will be used for working capital, corporate purposes, and debt repayment. The offering is backed by an effective shelf registration statement filed on March 15, 2019, with Citigroup, Barclays, Morgan Stanley, and RBC Capital Markets acting as joint book-running managers.

Positive

• The offering could strengthen CNH Industrial Capital's financial position through additional working capital.
• Notes will be guaranteed by subsidiaries, enhancing investor confidence.

Negative

• The reliance on market conditions introduces uncertainty regarding the successful issuance of the new notes.
• Allocation of proceeds for debt repayment may suggest existing financial strain.

London, September 29, 2020

CNH Industrial N.V. (NYSE: CNHI / MI: CNHI) today announced that its wholly owned subsidiary, CNH Industrial Capital LLC, plans to offer new notes, subject to market conditions. The notes 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. CNH Industrial Capital LLC is the North American arm of CNH Industrial’s global financial services business.

CNH Industrial Capital LLC intends to add the net proceeds from the offering to its general funds and use them for working capital and other general corporate purposes, including, among other things, the purchase of receivables or other assets in the ordinary course of business. The net proceeds may also be applied to repay CNH Industrial Capital LLC’s indebtedness as it becomes due.

Citigroup Global Markets Inc., Barclays Capital Inc., Morgan Stanley & Co LLC. and RBC Capital Markets, LLC are acting as joint book-running managers and the representatives of the underwriters for the offering, and Deutsche Bank Securities Inc., BBVA Securities Inc., Goldman Sachs & Co. LLC and MUFG Securities Americas Inc. are acting as joint book-running managers for the offering. The offering is being made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission on March 15, 2019. Copies of the preliminary prospectus supplement and prospectus for the offering may be obtained by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: 1 (800) 831-9146, Email: prospectus@citi.com; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: 1 (888) 603-5847, Email: barclaysprospectus@broadridge.com; Morgan Stanley & Co LLC., 180 Varick Street, New York, NY 10014, Attn: Prospectus Department, Telephone: 1 (866) 718-1649, Email: prospectus@morganstanley.com; or RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281, Attn: Transaction Management, Telephone: 1 (866) 375-6829, Email: rbcnyfixedincomeprospectus@rbccm.com.  Copies of the preliminary prospectus supplement and the accompanying prospectus for the offering are also available on the website of the U.S. Securities and Exchange Commission at http://www.sec.gov.

***

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

CNH Industrial Capital LLC is an indirect wholly owned subsidiary of CNH Industrial N.V. and is headquartered in Racine, Wisconsin.  As a captive finance company, the primary business of CNH Industrial Capital LLC and its subsidiaries is to underwrite and manage financing products for end-use customers and dealers of CNH Industrial America LLC and CNH Industrial Canada Ltd. (collectively, “CNH Industrial North America”) and provide other related financial products and services to support the sale of agricultural and construction equipment sold by CNH Industrial North America. CNH Industrial Capital LLC and its subsidiaries also provide wholesale and retail financing related to new and used agricultural and construction equipment manufactured by entities other than CNH Industrial North America. CNH Industrial Capital LLC’s principal executive offices are located at 5729 Washington Avenue, Racine, WI 53406, and the telephone number is +1(262) 636-6011.

Contacts:

Corporate Communications

Email: mediarelations@cnhind.com

Investor Relations

Email: investor.relations@cnhind.com

Attachment

• 20200929_PR_CNH_Industrial_Announces_Subsidiary_Notes_Offering.pdf

FAQ

What is CNHI's recent announcement regarding notes offering?

CNHI's subsidiary, CNH Industrial Capital LLC, plans to offer new notes to enhance its financial standing.

How will CNHI use the proceeds from the notes offering?

The proceeds will be utilized for working capital, general corporate purposes, and debt repayment.

Who are the underwriters for CNHI's notes offering?

Citigroup, Barclays, Morgan Stanley, and RBC Capital Markets are the joint book-running managers.

When was the shelf registration statement for CNHI filed?

The shelf registration statement was filed on March 15, 2019.

What does CNHI's notes offering mean for investors?

It may indicate improved capital availability but also suggests existing debt obligations.