By Angela McDaniels
Tacoma, Wash., Aug. 27 - Caterpillar Inc. received tenders for $1,324,635,000 principal amount of debentures and notes, and all of the tendered debentures and notes have been accepted for exchange, according to a company news release.
Exchange offers for the debentures and notes began July 27 and ended at 11:59 p.m. ET on Aug. 23.
As previously reported, the company offered a combination of new 3.803% debentures due Aug. 15, 2042 and cash for the old securities.
Caterpillar offered to exchange
• Any and all of its outstanding 7.375% debentures due 2097, 6.95% debentures due 2042, 8.25% debentures due 2038, 7.3% debentures due 2031 and 6.625% senior debentures due 2028. These five exchange offers are, collectively, the any and all offers;
• A principal amount of 5.2% senior notes due 2041 such that the amount of new debentures issuable in exchange for 5.2% notes does not exceed the difference between $2 billion and the total principal amount of new debentures issued in the any and all offers; and
• A principal amount of 6.05% debentures due 2036 such that the amount of new debentures issuable in exchange for 6.05% debentures does not exceed the difference, if any, between $2 billion and the amount of new debentures issued in the other six exchange offers.
The amount of notes tendered, the total exchange prices and the make-up of the total exchange prices are noted in the table below. Each total exchange price includes an early participation premium of $30 payable in cash to holders who tendered prior to 5 p.m. ET on Aug. 9, the early tender date.
Holders tendered $150,000 of 6.95% debentures, $117,000 of 6.625% debentures and $275,000 of 5.2% notes after the early tender date. The remainder of the debentures and notes were tendered prior to the early tender date.
The settlement date for notes tendered in the any and all exchange offers by the early tender date was Aug. 15, and the settlement date for the remaining notes was Aug. 27.
In all, the company issued $1,721,536,000 principal amount of new debentures, including $801,649,000 of new debentures issued on Aug. 15.
The total exchange prices were calculated by reference to the bid-side yield on the 3.125% Treasury notes due Feb. 15, 2042 at 10 a.m. ET on Aug. 10 plus a fixed spread of 145 basis points for the 7.375% debentures, 95 bps for the 6.95% debentures and 8.25% debentures, 70 bps for the 7.3% debentures, 60 bps for the 6.625% debentures, 100 bps for the 5.2% notes and 85 bps for the 6.05% debentures.
The new debentures' interest rate is equal to the bid-side yield on the 3.125% Treasury notes due Feb. 15, 2042 plus 110 bps.
The offers were subject to enough notes being tendered to result in the issuance of at least $250 million of new debentures.
D.F. King & Co., Inc. (800 714-3312 or, for banks and brokers, 212 493-6996, or e-mail cat@dfking.com) was the information agent.
Caterpillar is a heavy equipment manufacturer based in Peoria, Ill.
Caterpillar exchange offer results
Security Outstanding amount Amount tendered
7.375% debentures due 2097 $300 million $53,885,000
6.95% debentures due 2042 $250 million $90,138,000
8.25% debentures due 2038 $250 million $184,796,000
7.3% debentures due 2031 $350 million $107,774,000
6.625% senior debentures due 2028 $300 million $106,782,000
5.2% senior notes due 2041 $1.25 billion $491.32 million
6.05% debentures due 2036 $750 million $289.94 million
TOTAL $3.45 billion $1,324,635,000
Exchange price
| Security | Total exchange price | New debentures | Cash | Early premium
|
| 7.375% debentures due 2097 | $1,595.97 | $1,545.97 | $20.00 | $30.00 cash
|
| 6.95% debentures due 2042 | $1,594.60.00 | $1,364.60 | $200.00 $30.00 cash
|
| 8.25% debentures due 2038 | $1,773.25 | $1,683.25 | $60.00 | $30.00 cash
|
| 7.3% debentures due 2031 | $1,536.03 | $1,396.03 | $110.00 $30.00 cash
|
| 6.625% senior debentures due 2028 | $1,408.63 | $1,258.63 | $120.00 $30.00 cash
|
| 5.2% senior notes due 2041 | $1,263.43 | $1,063.43 | $170.00 $30.00 cash
|
| 6.05% debentures due 2036 | $1,400.60.00 | $1,370.60 | None | $30.00 cash
|
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