Cummins Completes Sale of $250 Million in Senior Notes.Business Editors COLUMBUS, Ind.--(BUSINESS WIRE)--Nov. 20, 2002 Cummins Inc. (NYSE NYSE See: New York Stock Exchange :CUM) announced today that it has completed its private placement offering of $250 million in senior notes, maturing in 2010. The notes, which bear interest at 9.5 percent, were issued to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. existing debt, to reduce short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. and for general corporate purposes. On November 5, Cummins announced that it had executed a new three-year revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. with a group of banks. The secured agreement provides for borrowings of up to $385 million. "With the notes and the revolving credit agreement, Cummins now has substantial liquidity in place, and we are well positioned to fund our financing needs going forward," said Tim Solso, Cummins Chairman and Chief Executive Officer. The senior notes have not been registered under the Securities Act of 1933 or applicable state securities laws, and may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration under the Securities Act and applicable state securities laws or available exemptions from such registration requirements. A global power leader, Cummins Inc. is a corporation of complementary business units that design, manufacture, distribute and service electrical power generation systems, engines and related technologies, including fuel systems, controls, air handling, filtration and emission solutions. Headquartered in Columbus, Indiana Columbus (IPA: [kəˈlʌm.bəs]) is the county seat of Bartholomew County, Indiana. The population was 39,059 at the 2000 census. The current mayor is Fred Armstrong. (USA), Cummins serves its customers through more than 500 company-owned and independent distributor locations in 131 countries and territories. With 24,900 employees worldwide, Cummins reported sales of $5.7 billion in 2001. Press releases by fax may be requested by calling News on Demand (toll free) at 888-329-2305. Cummins home page can be found at www.cummins.com. Information provided and statements in this release that are not purely historical are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements regarding the company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings. |
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