CNH Global last week announced that its wholly owned subsidiary, Case New Holland, is redeeming its outstanding 9 ¼-percent senior notes due 2011. The full $1.05 billion aggregate principal amount of the notes will be redeemed on Aug. 1.
“CNH’s improved industrial and financial performance, high cash balances, a commitment to improve CNH’s balance sheet structure while reducing interest expense and continuing support of the Fiat Group as the principal reasons behind the early redemption,” said Rubin McDougal, CNH's chief financial officer. “We will permanently retire a portion of the notes, and refinance the balance through new-term financing available from Fiat Finance North America.”
This redemption represents 100 percent of the notes and the call is being made to all holders. The redemption price will be 104.625 percent of the principal amount of the notes plus accrued but unpaid interest, to the redemption date, which, as of the Aug. 1 redemption date, would total $1.09 billion.