Caterpillar said to plan 50-year debt as part of $2B sale


Caterpillar (CAT) reportedly is planning to sell $2B of notes including the first 50-year bonds offered in the U.S. in nearly a year, with the $500M of debt due 2064 said to price to yield 137.5 bps more than Treasurys.

The bonds apparently were added to the offering, which includes $1B of 10-year notes and $500M of 30-year securities, after it was marketed earlier today.

In addition, the 2024 bonds may price to yield 80 bps more than similar maturity government debt and the 2044 securities may pay a 95 bps spread.

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Comments (4)
  • John Grandits
    , contributor
    Comments (658) | Send Message
     
    1.38% over treasuries, the demand for yield continues. Apple recently sold a whack of bonds too at 75 bps over treasuries. Curious to know where all this demand is coming from???
    5 May 2014, 06:12 PM Reply Like
  • King Rat
    , contributor
    Comments (1822) | Send Message
     
    As the tapering stimulus is suppressing long term rates, this is the result. I'd be curious to see what rates 20+ year corporate bonds collect a year from now.

     

    What I am curious is how they calculate the theoretical yield on theoretical 50 year treasuries.
    5 May 2014, 07:59 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1221) | Send Message
     
    AAPL did not sell 50 year bonds. Hence the higher yield.
    6 May 2014, 12:30 AM Reply Like
  • goblue5876
    , contributor
    Comments (174) | Send Message
     
    People are still scared and desperate for safety and some "guaranteed" income. I quote guaranteed because inflation has to be at least 2-3% over this time, likely to go higher.
    23 May 2014, 12:12 PM Reply Like
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