Pricing of CNH Industrial Capital LLC $500 million notes

Rhea-AI Summary

On September 29, 2020, CNH Industrial N.V. (NYSE: CNHI) announced its subsidiary, CNH Industrial Capital LLC, has priced $500 million in 1.875% notes due 2026. The offering is set to close on October 6, 2020, pending customary conditions. Proceeds from the notes will support general corporate purposes, including working capital and asset purchases, and may be used to repay existing debt. The notes, which will mature on January 15, 2026, will pay interest semi-annually and are guaranteed by two wholly-owned subsidiaries of CNH Industrial Capital LLC.

Positive

• Raising $500 million through 1.875% notes strengthens liquidity for CNH Industrial.
• Proceeds will enhance working capital and allow for potential debt reduction.

Negative

• None.

London, September 29, 2020

CNH Industrial N.V. (NYSE: CNHI / MI: CNHI) today announced that its wholly owned subsidiary, CNH Industrial Capital LLC, has priced $500 million in aggregate principal amount of 1.875% notes due 2026, with an issue price of 99.761%. The offering is expected to close on October 6, 2020, subject to the satisfaction of customary closing conditions.

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.

The notes, which are senior unsecured obligations of CNH Industrial Capital LLC, will pay interest semi-annually on January 15 and July 15 of each year, beginning on January 15, 2021, and 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. The notes will mature on January 15, 2026.

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_Capital_Pricing

FAQ

What is the total amount raised by CNH Industrial through its recent note offering?

CNH Industrial raised $500 million through the pricing of 1.875% notes.

When is the offering expected to close for CNH Industrial's notes?

The offering is expected to close on October 6, 2020.

What is the interest rate and maturity date of the notes issued by CNH Industrial?

The notes have an interest rate of 1.875% and will mature on January 15, 2026.

How will CNH Industrial use the proceeds from the note offering?

Proceeds will be used for working capital, general corporate purposes, and potential debt repayment.

Who are the underwriters for CNH Industrial's note offering?

Underwriters include Citigroup, Barclays, Morgan Stanley, and RBC Capital Markets.