Pricing of CNH Industrial Capital LLC $500 million notes

Rhea-AI Summary

CNH Industrial Capital , a wholly owned subsidiary of CNH Industrial N.V. (NYSE: CNH), has priced $500 million in aggregate principal amount of 4.750% notes due 2028. The notes were priced at 99.658% and are expected to close on March 21, 2025.

The notes will pay interest semi-annually on March 21 and September 21, starting September 21, 2025. They will be guaranteed by CNH Industrial Capital America and New Holland Credit Company, The net proceeds will be used for working capital, general corporate purposes, purchasing receivables, and potentially repaying existing debt.

The offering is being managed by several financial institutions, including BNP Paribas Securities, BofA Securities, Deutsche Bank Securities, and Goldman Sachs as joint book-running managers and representatives.

Positive

• Successful $500 million debt raising strengthens company's liquidity position
• Strong backing from major financial institutions as underwriters
• Notes are senior unsecured obligations, indicating good credit standing

Negative

• New debt issuance increases company's interest expense obligations
• Notes priced at slight discount (99.658%) to face value

Insights

Financial Analyst

CNH Industrial's captive finance subsidiary has successfully priced a $500 million bond offering with a 4.750% coupon rate and 2028 maturity. This represents standard liability management that strengthens the company's financing arm, which is essential to supporting equipment sales in their agricultural and construction segments.

The slight discount to par value (99.658%) is typical for corporate bond issuances in the current interest rate environment. The 3-year maturity provides a balanced approach to debt management, neither overcommitting long-term nor creating significant near-term refinancing pressure.

What's particularly noteworthy is the strong syndicate of underwriters including BNP Paribas, Bank of America, Deutsche Bank, and Goldman Sachs as lead bookrunners. This high-caliber banking participation signals institutional confidence in CNH's credit quality.

The guaranteed structure, backed by CNH Industrial Capital America and New Holland Credit Company, creates a robust security arrangement that likely helped achieve competitive pricing. This financing maintains the company's liquidity flexibility, with proceeds directed toward working capital, receivables purchases, and potential debt refinancing.

For a company with a $14.4 billion market cap, this $500 million raise represents a proportionate capital infusion that should adequately support the financing needs of their dealer network and end customers. The transaction demonstrates CNH's continued access to debt markets at reasonable rates to maintain its essential captive financing operations.

Basildon, March 18, 2025

CNH Industrial N.V. (NYSE: CNH) today announced that its wholly owned subsidiary, CNH Industrial Capital LLC, has priced $500 million in aggregate principal amount of 4.750% notes due 2028, with an issue price of 99.658%. The offering is expected to close on March 21, 2025, 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 March 21 and September 21 of each year, beginning on September 21, 2025, 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 March 21, 2028.

BNP Paribas Securities Corp., BofA Securities, Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are acting as joint book-running managers and the representatives of the underwriters for the offering, and BBVA Securities Inc., Intesa Sanpaolo IMI Securities Corp., SMBC Nikko Securities America, Inc. and UniCredit Capital Markets LLC 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 12, 2025. Copies of the prospectus supplement and the accompanying prospectus for the offering may be obtained by contacting BNP Paribas Securities Corp., 787 Seventh Avenue, New York, NY 10019, Attn: Syndicate Desk, Telephone: 1-800-854-5674, Email: DL.US.Syndicate.Support@us.bnpparibas.com; BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com; Deutsche Bank Securities Inc., 1 Columbus Circle, New York, NY 10019, Attn: Prospectus Group, Telephone: 1-800-503-4611, Email: prospectus-CPDB@db.com; or Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282, Attn: Prospectus Department, Telephone: 1-866-471-2526, Email: prospectus-ny@ny.email.gs.com. Copies of the 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:

Media Relations
Email: mediarelations@cnh.com

Investor Relations
Email: investor.relations@cnh.com

Attachment

• 20250318_PR_ Pricing Press Release

FAQ

What is the interest rate and maturity date for CNH Industrial Capital's new $500 million notes?

The notes carry a 4.750% interest rate and will mature on March 21, 2028.

How will CNH Industrial Capital (CNHI) use the proceeds from the $500 million notes offering?

The proceeds will be used for working capital, general corporate purposes, purchasing receivables, and potentially repaying existing debt.

When will CNHI's new notes begin paying interest to investors?

Interest payments will begin on September 21, 2025, and will be paid semi-annually on March 21 and September 21.

Which entities are guaranteeing CNH Industrial Capital's new notes?

The notes are guaranteed by CNH Industrial Capital America and New Holland Credit Company,