By Saabira Chaudhuri
Caterpillar Inc. (CAT) has unveiled a private offer to exchange outstanding debentures and senior notes for a combination of a new series of debentures due in 2042 and cash.
The company is making seven separate exchange offers, one for 5.2% senior notes due 2041, another for 6.05% outstanding debentures due 2036, and five more for debentures due between 2028 and 2097.
The old debentures are due between 2028 and 2097 and have principal amounts outstanding between $250 million and $1.25 billion.
The offer will expire Aug. 23.
The total exchange price will be set Aug. 10 and will include an early participation premium of $30 payable in cash only to eligible holders who validly tender and who do withdraw their old debentures prior to an Aug. 9 deadline.
Shares of Caterpillar were up 0.4% to $83.66 in recent trading. The stock is down 20% in the past three months.
Write to Saabira Chaudhuri at email@example.com
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