Caterpillar Inc. Enters $11.5B Revolving Credit Facilities

What Happened

• Caterpillar Inc. and certain subsidiaries announced new and amended unsecured revolving credit facilities entered in August 2026. The packages include a $3.5 billion 364‑day facility, a $3.0 billion three‑year facility (expiring Aug 27, 2029) and a $5.0 billion five‑year facility (expiring Aug 27, 2031). The facilities are available for general corporate purposes and, as of the filing, no amounts have been drawn.

Key Details

• Total capacity across the three facilities: $11.5 billion (3.5B + 3.0B + 5.0B).
• 364‑day facility expiry: August 26, 2027; includes local‑currency addenda allowing certain subsidiaries to borrow up to the equivalent of $100 million (and a Japan addendum permitting up to $100M equivalent in JPY) as part of the 364‑day commitment.
• Financial covenants: Caterpillar must maintain consolidated net worth of at least $9.0 billion (defined as consolidated stockholders’ equity including preferred stock but excluding certain pension/OPEB items in AOCI). Cat Financial must maintain an interest coverage ratio > 1.15:1 (measured on the prior four‑quarter period) and a leverage ratio (consolidated debt to consolidated net worth) not greater than 10.0:1 (with specified monthly and year‑end calculations).
• Draws on the facilities are subject to customary conditions precedent and facility fees. Certain lenders/agents have provided and may provide other banking services to Caterpillar and its subsidiaries.

Why It Matters

• These credit facilities provide substantial near‑ and longer‑term backstop liquidity (up to $11.5B) for Caterpillar and its finance subsidiaries, supporting working capital, short‑term needs and general corporate uses.
• The facilities include binding financial covenants that set minimum net worth and coverage/leverage thresholds for Cat Financial; breaches could restrict future borrowing or other actions until cured.
• For investors, the filing signals that the company has renewed and extended its committed credit capacity without drawing on it, preserving flexibility while maintaining covenant terms to note when monitoring credit risk or capital allocation decisions.