D2-Lancaster Farming, Saturday, April 26, 2003 CNH Announces Plans To Reduce Debt LAKE FOREST, 111. CNH Global N.V. (NYSE-.CNH) an nounced March 5 that its board of directors has approved plans to reduce the company’s net debt by $2 billion through the is suance of convertible perpetual preferred securities to a finan cial affiliate of CNH’s majority shareholder. Fiat S.P.A. the * JC H ■ M Fluffed up... never roughed up If a storm hits while you’re making hay, you’ll need the New Holland Model 166 windrow inverter. It helps to dry hay fast, so you can bale or chop sooner. The 166 gently lifts, fluffs and turns windrows without roughing up the hay. So, you move your windrows onto dry ground for faster drying and retain valuable leaves. For hay that’s fluffed up not roughed up, check out the 166 today. SEE YOUR NEAREST MWHOLLAM) DEALER FOR DEPENDABLE EQUIPMENT & SERVICE Abbottstown. PA Messick Equipment Messick Schrefflerv RD 1, Box 255 A Equipment Pitman, PA 717-259-6617 Rt. 283 - Rheems Exit 570-648-1120 Annville. PA BHM Farm Equipment, Inc RD 1, Rte. 934 717-867-2211 PA R&W Equipment Co. 35 East Willow Street 717-243-2686 company expects to use the pro ceeds of the transaction to repay Equipment Operations indebt edness owed to Fiat Group com panies. The immediate benefits to CNH are expected to be sub stantial. The securities will carry an annual dividend rate of 0.0% until January 1,2005. From that PENNSYLVANIA Elizabethtown. PA 717-367-1319 A.B.C. Groff, Inc. 110 South Railroad 717-354-4191 IgfcllNEW HOLLAND CREDIT date, the annual dividend will be fixed at the dividend yield on the company’s common shares, plus an additional 150 basis points should the company achieve cer tain financial performance tar gets. Dividends will be payable annually in arrears, and deferr able for up to five years. By retiring $2 billion of Rolabar® rakes better by far - Don’t settle for second best when it comes to rakes. Choose the original - a dependable New Holland Rolabar® rake. The rake more farmers buy over all other brands combined. Why? Because its rugged construction makes it one hard-working, hay grabbing machine. See the original Rolabar rake today. & f\EW HOLLAND Speed up drying time with a New Holland tedder. It lifts downed crop up so air flows through it. Choose from three tedders - B’6” Model 157, 16’5” Model 163, or 22’8” Model 169. Stop in. We’d like to show you how our tedders can help you put up quality hay. Pitman. PA Tamaqua. PA Charles S. Snyder, Inc. R.D.3 570-386-5945 Equipment Operations debt coming due through 2005, CNH gains ample financial liquidity. Of the total debt being repaid, $1.3 billion matures in 2003. On a Dec. 31,2002 pro forma basis, Equipment Operations net debt will drop to a level of about $1.5 billion, and the company’s net debt-to-capitalization ratio will drop from 56% to 24%. Interest expense should be reduced by nearly $lOO million on an Why wait for the sun Frederick. MD Ceresville New Holland, Inc. Rt. 26 East Equipment 301-662-4197 Outside MD, 800-331-9122 Hagerstown. MD Antietam Tractor & Equipment, Inc. 20927 Leitersburg Pike 800-553-6731 301-791-1200 Rising Sun. MD Ag Industrial Equipment Route 1, 50 N. Greenmont Rd 1-800-442-5043 annual pre-tax basis. “Our recapitalization plan will substantially improve the capital structure of CNH,” Michel Lecomte, CNH chief fi nancial officer said. “This action provides the clearest possible ev idence of majority shareholder Fiat’s commitment to CNH.” Merrill Lynch & Co. served as financial advisor to CNH on this transaction. I\EW HOLLAND & (SEW HOLLAISD Washington. N Smith Tractor & Equip., Inc. 15 Hillcrest Ave. 908-689-7900 Bridgeton. NJ Leslie G. Fogg, Inc. Canton & Stow Creek Landing Rd. 609-451-2727 609-935-5145 Woodstown. NJ Owen Supply Co. Broad Street & East Avenue 609-769-0308
Significant historical Pennsylvania newspapers