CNH Industrial Prices Note Offering - Analyst Blog

CNH Industrial N.V. (CNHI), a global leader in industrial goods, announced the pricing of its benchmark note issuance denominated in euro. The company confirmed that the offering will be worth €1 billion in principal amount of 2.75% notes due Mar 2019, with an issue price of 99.47% of the principal amount.

The offer is expected to close on Mar 18, 2014. The notes will be issued by CNH Industrial Finance Europe S.A., a wholly-owned subsidiary of CNH Industrial.

Currently, CNH Industrial has a substantial amount of debt on its balance sheet, with consolidated debt of €21,714 million, as of Dec 31, 2013. The company is, at present, rated below investment grade, with a BB+ rating on its long-term debt by Standard & Poor's Rating Services.

The proceeds from the debt offering will probably be used to improve the firm's liquidity to fuel further growth and expand its operations.

Based in Amsterdam, CNH Industrial is spread across 190 countries, and employs a workforce of more than 68,000 people and some 6,000 dealers. Its rich heritage spans 170 years within which it has established itself as an industry leader that consistently delivers state-of-the-art technology and capitalizes on opportunities for growth and consolidation. CNH Industrial designs, produces, and sells trucks, commercial vehicles, buses, special vehicles, agricultural and construction equipment, in addition to engines, and transmissions for those vehicles and engines for marine application.

With 49 advanced research and development centers positioned around the world, CNH Industrial has always been committed to continuous improvement in the reliability and efficiency of its products. Innovation and technological progress are the pillars that enabled CNH Industrial's brands, to maintain a considerable competitive advantage and a global position of leadership over the years.

Notable stocks in the same industry that are worth mentioning include Daimler AG (DDAIF), Tata Motors Ltd. TTM and Honda Motor Co., Ltd. HMC.