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DCAT
Investor Information
DCAT CP is marketed by two
of Wall Street's leading broker/dealers: Banc of America Securities
and Goldman Sachs.
The CP issued by DCAT
is rated A1 by Standard &
Poor's and F1 by Fitch Ratings.
The CP placement memorandums
provided to investors by Banc of America and Goldman are
attached.
DCAT operates a fully
supported CP program. Back-up liquidity in an amount sufficient to
provide liquidity support for one hundred percent (100%) of all
outstanding DCAT CP is provided by Caterpillar Financial Services
Corporation (“CFSC”) through a dealer loan purchase agreement.
DCAT is a maturity
matched program. The proceeds of CP issued by DCAT can only be used
to “match fund” short-term loans to Caterpillar equipment dealers
(or companies whose wholly owned subsidiary sells Caterpillar
equipment). For each outstanding CP obligation, DCAT holds one or
more loans with the same aggregate Face Amount and maturity date as
the CP issued to fund the loan. Under the terms of the Dealer Loan
Purchase Agreement between DCAT and CFSC, CFSC is required to
purchase any DCAT loan which is not paid at maturity (including any
loan which cannot be renewed at maturity because of the inability of
DCAT to sell CP to pay maturing CP).
Caterpillar machines,
engines and parts are marketed through independently owned and
operated dealerships.
DCAT makes loans to such independent
dealers.
Caterpillar Inc.
supports these independent dealers by providing them with
specialization and assistance in the areas of finance, parts, sales
and service and after sales support. The services provided by Caterpillar include:
- inventory planning and counsel
- repurchase of surplus Caterpillar parts
at current net prices
- parts availability of 99.5% within 48
hours
- personnel training
- marketing support and counsel
According to data supplied by Caterpillar, at
year-end 2007 Caterpillar dealerships in the United States employed
over 43,000 people, had aggregate sales of machines, engines, parts
and service of $24.9 billion and total owners’ equity of
approximately $5.8 billion. The average U.S. dealer has been a
party to the Caterpillar sales and service agreement for over sixty
years.
To view DCAT memorandum for CP marketed by Banc of America Securities (PDF format), click here.
To view DCAT memorandum for CP marketed by Goldman Sachs (PDF format), click here.
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The commercial paper program of the U.S. Caterpillar® dealers
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