CNH Industrial SEC Filings

6-K
CNH INDUSTRIAL N.V. filed this Form 6-K on 11/06/2017
Entire Document
 

In May 2017, CNH Industrial Finance Europe S.A. issued €500 million of notes at an annual fixed rate of 1.375% due in 2022 (the “1.375% CIFE Notes”) at an issue price of 99.335 percent of their principal amount. The 1.375% CIFE Notes were issued under the €10 billion Euro Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V.

In June 2017, Case New Holland Industrial Inc. redeemed all of the outstanding $636 million aggregate principal amount of its 7.875% Senior Notes due 2017.

In September 2017, the Company repurchased a total of €800 million in principal amount of 6.250% Notes due 2018 and 2.750% Notes due 2019 issued by CNH Industrial Finance Europe S.A., and issued €650 million in principal amount of 1.750% Notes due 2025.

In October 2017, the Company announced the early redemption of all of the outstanding $600 million in principal amount of 3.875% Notes due 2018 issued by CNH Industrial Capital LLC.

On October 24, 2017, Fitch Ratings assigned CNH Industrial N.V. and CNH Industrial Capital LLC new long-term issuer default ratings of “BBB-”. This rating action follows the upgrade of Standard and Poor’s, on June 15, 2017, of the long-term corporate rating of CNH Industrial N.V. and CNH Industrial Capital LLC to “BBB-”. These two actions will make the Company’s securities eligible for the main investment grade indices in the U.S. market, which the Company believes will improve its access to funding at better rates. Further, following the upgrade by S&P Global Ratings, the Euro Medium Term Notes will benefit from Eurosystem eligibility, and the financial covenant contained in the €1.75 billion Revolving Credit Facility, that requires Industrial Activities to maintain EBITDA/Net interest ratio, will no longer be applicable.

The calculation of Net Debt as of September 30, 2017 and December 31, 2016 and the reconciliation of Net Debt to Total Debt, the U.S. GAAP financial measure that we believe to be most directly comparable, are shown below:

 

 

Consolidated

 

 

Industrial Activities

 

 

Financial Services

 

 

 

September 30, 2017

 

 

December 31, 2016

 

 

September 30, 2017

 

 

December 31, 2016

 

 

September 30, 2017

 

 

December 31, 2016

 

 

 

(in millions)

 

Third party debt

 

$

25,518

 

 

$

25,276

 

 

$

6,604

 

 

$

6,694

 

 

$

18,914

 

 

$

18,582

 

Intersegment notes payable *

 

 

 

 

 

 

 

 

800

 

 

 

997

 

 

 

1,267

 

 

 

1,479

 

Total debt *

 

 

25,518

 

 

 

25,276

 

 

 

7,404

 

 

 

7,691

 

 

 

20,181

 

 

 

20,061

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

4,100

 

 

 

5,017

 

 

 

3,569

 

 

 

4,649

 

 

 

531

 

 

 

368

 

Restricted cash

 

 

681

 

 

 

837

 

 

 

 

 

 

 

 

 

681

 

 

 

837

 

Intersegment notes receivable *

 

 

 

 

 

 

 

 

1,267

 

 

 

1,479

 

 

 

800

 

 

 

997

 

Derivatives hedging debt

 

 

(7

)

 

 

2

 

 

 

(7

)

 

 

2

 

 

 

 

 

 

 

Net debt (cash)**

 

$

20,744

 

 

$

19,420

 

 

$

2,575

 

 

$

1,561

 

 

$

18,169

 

 

$

17,859

 

 

(*)

Total debt of Industrial Activities includes Intersegment notes payable to Financial Services of $800 million and $997 million as of September 30, 2017 and December 31, 2016, respectively. Total Debt of Financial Services includes Intersegment notes payable to Industrial Activities of $1,267 million and $1,479 million as of September 30, 2017 and December 31, 2016, respectively.

 

 

(**)

The net intersegment receivable/payable balance owed by Financial Services to Industrial Activities was $467 million and $482 million as of September 30, 2017 and December 31, 2016, respectively.

 

The increase in Net Debt at September 30, 2017 compared to December 31, 2016 mainly reflects seasonal cash absorption related to the operating activities, the annual dividend payment of $161 million to shareholders and a negative foreign exchange impact on euro denominated debt.

 

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