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Caterpillar seeks $3 billion loan from banks to boost liquidity: Bloomberg

FILE PHOTO: Caterpillar Inc. equipment is on display for sale at a retail site in San Diego, California, U.S., March 3, 2017. REUTERS/Mike Blake

(Reuters) – Caterpillar Inc (CAT.N) is in talks with banks for a new $3 billion nine-month revolving credit facility, Bloomberg bloom.bg/34nIvAB reported on Thursday, citing people familiar with the matter.

The world’s biggest construction and mining equipment maker raised $2 billion through the bond market on Monday. It currently has about $10.5 billion in revolving credit facilities.

Late last month, Caterpillar said it would withhold annual salary increases for senior executives, managers and salaried employees to contain costs due to the impact of the coronavirus epidemic on its business.

The company also withdrew its 2020 earnings forecast and suspended some operations, citing uncertainty caused by the pandemic, which has dented equipment sales and hit supply chains.

The rapid spread of the virus, which has infected 1.5 million people globally and led to nearly 90,000 deaths, has forced countries into lockdowns, disrupting everything from businesses to everyday life.

Since the outbreak, leading companies across the world have been rushing to bolster their liquidity position as the fast-pandemic wreaks havoc on the global economy.

Caterpillar did not immediately respond to a request for comment.

Reporting by Rachit Vats in Bengaluru, additonal reporting by Saumya Sibi Joseph; Editing by Aditya Soni and Anil D’Silva

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