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CNH Industrial (CNHI) Signs Euro 4B Revolving Credit Facility

Zacks Equity Research

CNH Industrial N.V. CNHI signs a €4-billion committed revolving credit facility. This is likely to augment its financial capacity, and is intended for general corporate purposes and meeting working capital requirements. This replaces an existing 5-year €1.75-billion facility, which is scheduled to mature in June 2021.

CNH Industrial, with principal office in London, offers vehicles for agricultural and industrial purposes. Its products range from tractors to trucks and buses as well as powertrain solutions for off and on-road, and marine vehicles. It has 12 brands that offer vehicles to a wide consumer base.

The company reached the new credit facility with a group of 32 banks, with the tenure of five years. Also, the tenure has two extension options of one year each, which can be executed on the first and second anniversary of the signing date.

In fourth-quarter 2018, CNH Industrial reported adjusted earnings of 21 cents per share, increasing from 13 cents in the prior-year quarter. Moreover, the bottom line surpassed the Zacks Consensus Estimate of 15 cents. During the quarter, consolidated revenues declined 0.3% from the year-ago quarter to $8.2 billion. However, the figure surpassed the Zacks Consensus Estimate of $8.08 billion.

Over the past three months, CNH Industrial’s shares have outperformed the industry it belongs to. Over this period, shares of the company have increased 17.7% while the industry witnessed 1.3% growth.



CNH Industrial currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Ferrari N.V. RACE, Oshkosh Corp. OSK and General Motors Company GM. While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and General Motors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 8.7%.

Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have gained 25.9%.

General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 10.8%.

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