CNH Signs €3.25 Billion Credit Facility with 18 Banks, Reducing Size After Iveco Demerger

CNH Industrial N.V. (NYSE: CNHI), a world-class equipment and services company, has signed a €3.25 billion committed revolving credit facility with a group of 18 banks. The new facility, which has a 5-year tenor with two extension options of one year each, replaces an existing €4 billion facility that was due to mature in March 2026.

The reduced size of the new facility, down from €4 billion to €3.25 billion, aligns with CNH's lower funding needs following the demerger of its Iveco Group business. The transaction shows the strong support of a large panel of international key relationship banks for CNH Industrial.

Why this matters: The credit facility signing reflects CNH Industrial's strong financial position and the confidence of major international banks in the company's future prospects. It also highlights the impact of corporate restructurings, such as the Iveco demerger, on the financing needs of large industrial groups.

CNH Industrial, which is focused on innovation, sustainability, and productivity, provides a range of agricultural and construction equipment and technologies through its portfolio of global and regional brands. The company serves various sectors including agriculture and construction.

The new revolving credit facility will be used for CNH Industrial's general corporate purposes. "The transaction confirms the strong support of a large panel of international key relationship banks for the company," CNH stated in a press release.

The signing of the €3.25 billion credit facility, which was completed on April 19, 2024, ensures CNH Industrial maintains ample liquidity and financial flexibility to support its operations and growth initiatives in the coming years. The company's ability to secure this financing on favorable terms underscores its robust financial profile and the strength of its relationships with leading banks worldwide.

Key Takeaways

• CNH Industrial secured a €3.25B revolving credit facility with 18 banks.
• The new facility replaces an existing €4B facility due to mature in 2026.
• The reduced size aligns with CNH's lower funding needs after Iveco Group demerger.
• The facility signing reflects CNH's strong financial position and bank confidence.
• The new credit facility ensures ample liquidity and flexibility for CNH's operations.