Caterpillar Financial Services Enters $11.5B Credit Facilities

What Happened

• On August 27, 2026, Caterpillar Financial Services Corporation (Cat Financial) and related Caterpillar affiliates entered into a set of unsecured revolving credit agreements (the "Credit Facilities"). The package includes a 364‑Day Facility ($3.5 billion, expires Aug 26, 2027), a Three‑Year Facility ($3.0 billion, expires Aug 27, 2029) and a Five‑Year Facility ($5.0 billion, expires Aug 27, 2031). The 364‑day facility also includes local‑currency addendums enabling certain subsidiaries to borrow the equivalent of up to $100 million in approved currencies (GBP/EUR/JPY). The new agreements amend and replace the 2025 facilities. As of the filing date, the borrowers have not drawn on these facilities.

Key Details

• Total available commitments: $11.5 billion (364‑day $3.5B, three‑year $3.0B, five‑year $5.0B).
• Local currency capacity: CIF/CIF LUX may borrow up to ~$100M equivalent in approved currencies (GBP, EUR); CFKK may borrow up to ~$100M equivalent in JPY.
• Agents and lenders: Citibank, N.A. is Agent; Citibank Europe plc (UK Branch) is Local Currency Agent; MUFG Bank, Ltd. is Japan Local Currency Agent; multiple banks serve as lenders.
• Key covenants: Caterpillar must maintain consolidated net worth ≥ $9.0 billion; Cat Financial must maintain an interest coverage ratio > 1.15:1 and consolidated leverage (debt to net worth) ≤ 10.0:1 (monthly average and annually on Dec 31).
• Use and status: Facilities are unsecured, available for general corporate purposes, subject to customary conditions precedent and facility fees, and currently undrawn. Lenders/agents have provided and may provide other banking services to Caterpillar and affiliates.

Why It Matters

• These agreements provide liquidity and a committed funding backstop across short‑, medium‑ and long‑term maturities, increasing financial flexibility for Caterpillar and its finance entities. Investors should note the specific financial covenants (net worth, interest coverage and leverage) that the company must meet — breaches could restrict access to the facilities or trigger defaults. Because the facilities are undrawn, they are primarily a contingency and liquidity resource rather than new debt on the balance sheet today.