Beginning fiscal 2011, Caterpillar Inc. (CAT), has redeemed debt totaling $38.72 million, including twelve notes having different coupon rates. Soon after its outstanding first quarter results, the company yet again has come up with the redemption of $10.49 million of debt via three notes, issued earlier by Caterpillar Financial Securities.
The first note maturing on May 15, 2027, bears a coupon rate of 5.6% on the amount of $3.61 million; the second note, maturing on May 15, 2023, bears a coupon rate of 5.65% on the amount of $1.942 million and the third note, maturing on May 15, 2027, bears a coupon rate of 5.7% on the amount of $4.942 million. All the notes will be redeemed at 100 percent of the remaining amount through the company’s call option.
Caterpillar also has a long history of returning value to shareholders. During the first quarter of fiscal 2011, the company bought back shares for $17.815 million and $8.624 million, maturing on February 15, 2016, and March 15, 2016, respectively.
During March, Caterpillar redeemed a total debt of $15.15 million, comprising six notes. Caterpillar has focused on driving shareholder value, encouraged by its huge cash balance and strong cash flow. The company possessed cash and cash equivalents of $4.87 billion as of March 31, 2011, and cash from operating activities of $765 million for the fiscal first quarter.
Peoria, Illinois-based Caterpillar Inc. is the manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.
The company is one of the few leading U.S. companies in an industry that competes globally from a principally domestic manufacturing base. The company operates three divisions – Machines, Engines and Financial Products. Caterpillar competes with the likes of CNH Global NV (CNH), Komatsu Ltd. (KMTUY) and Volvo AB (VOLVY).
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