CNH announces signing of a €3.25 billion committed revolving credit facility  

Rhea-AI Summary

• English
• French
• German
• Italian
• Korean
• Spanish

CNH announces signing of a €3.25 billion committed revolving credit facility on April 19, 2024. The facility, entered with 18 banks, has a 5-year tenor with two extension options and replaces a previous €4 billion facility. It aligns with reduced funding needs post demerger of Iveco Group, showcasing strong bank support for the Company.

Financial Analyst

Access to a robust revolving credit facility can significantly affect a company's liquidity and financial stability. In CNH's case, the facility, sized at €3.25 billion, is slightly smaller than the previous €4 billion credit line. This reduction likely reflects the company's optimized funding requirements post-Iveco Group demerger. The credit line's 5-year term, along with two one-year extensions, provides CNH with a relatively long-term horizon for financial flexibility. For investors, the terms of the facility signal a vote of confidence from a consortium of 18 banks and an implicit endorsement of CNH's creditworthiness. However, the reduced size compared to the previous facility may be worth noting, as it could indicate a conservative approach to leverage or a realignment with the company's current business scale. Investors should consider how the credit facility's terms might influence CNH's investment in R&D, global brand support and potential future acquisitions.

Market Research Analyst

CNH's alignment with innovation, sustainability and productivity positions it well within the global equipment and services market. The reduction in credit facility size post-Iveco demerger indicates a strategic refocusing. CNH's diversified portfolio, from agriculture to construction and its investments in digital technologies and autonomous systems highlight the company's forward-thinking approach. Investors should appreciate the potential growth opportunities in CNH's emphasis on high-precision satellite-based positioning and electric excavator solutions. These initiatives may not only drive long-term growth but also respond to the increasing demand for sustainable and efficient technologies in the industries CNH serves. The company's global reach and diverse brand portfolio could help mitigate market-specific risks and provide a buffer against economic fluctuations.

CNH announces signing of a €3.25 billion committed revolving credit facility

Basildon, April 23, 2024

On April 19, 2024, CNH (NYSE: CNHI) signed a €3.25 billion committed revolving credit facility, intended for general corporate purposes of the Company.

The facility, entered into with a group of 18 banks providing aggregate commitments in excess of €3.5 billion, has a 5-year tenor with two extension options of one year each, exercisable on the first and second anniversary of the signing date. It replaces an existing 5-year €4 billion facility due to mature in March 2026.

The final size of the facility, set at €3.25 billion, aligns with reduced funding needs following the demerger of Iveco Group. The transaction confirms the strong support of a large panel of international key relationship banks for the Company.

CNH Industrial (NYSE: CNHI) is a world-class equipment and services company. Driven by its purpose of Breaking New Ground, which centers on Innovation, Sustainability and Productivity, the Company provides the strategic direction, R&D capabilities, and investments that enable the success of its global and regional Brands. Globally, Case IH and New Holland supply 360° agriculture applications from machines to implements and the digital technologies that enhance them; and CASE and New Holland Construction Equipment deliver a full lineup of construction products that make the industry more productive. The Company’s regionally focused Brands include: STEYR, for agricultural tractors; Raven, a leader in digital agriculture, precision technology and the development of autonomous systems; Hemisphere, a leading designer and manufacturer of high-precision satellite-based positioning, and heading technologies; Flexi-Coil, specializing in tillage and seeding systems; Miller, manufacturing application equipment; Kongskilde, providing tillage, seeding and hay & forage implements; and Eurocomach, producing a wide range of mini and midi excavators for the construction sector, including electric solutions.

Across a history spanning over two centuries, CNH has always been a pioneer in its sectors and continues to passionately innovate and drive customer efficiency and success. As a truly global company, CNH’s 40,000+ employees form part of a diverse and inclusive workplace, focused on empowering customers to grow, and build, a better world.

For more information and the latest financial and sustainability reports visit: cnh.com

For news from CNH and its Brands visit: media.cnh.com

Contacts:

Media Relations
Email: mediarelations@cnh.com

Investor Relations
Email: investor.relations@cnh.com

Attachment

• 20240423_PR_CNH_Revolving_Credit_Facility

FAQ

What did CNH announce recently regarding a credit facility?

CNH announced the signing of a €3.25 billion committed revolving credit facility on April 19, 2024.

How long is the tenor of the credit facility signed by CNH?

The credit facility has a 5-year tenor with two extension options of one year each.

How much funding does the new credit facility provide?

The new credit facility provides €3.25 billion in funding.

Which group of banks is providing the credit facility to CNH?

The credit facility is provided by a group of 18 banks.

What is the purpose of the €3.25 billion credit facility signed by CNH?

The credit facility is intended for general corporate purposes of the Company.