CNH Global N.V. announced that its wholly owned subsidiary, Case New Holland, is redeeming its outstanding 9 1/4 percent Senior Notes due 2011, with a June 28 mailing of notice to bond-holders. The full $1,050,000,000 aggregate principal amount of the Notes will be redeemed on August 1, 2007.
Rubin McDougal, CNH’s chief financial officer, cited 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.
“We will permanently retire a portion of the notes and refinance the balance through new term financing available from Fiat Finance North America,” McDougal says.
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 August 1, 2007 redemption date, would total $1,098,562,500).
Payment to the holders will occur on the redemption date, upon presentation and surrender of the Notes to the Trustee, as Paying Agent, in person or by mail.
