Caterpillar (CAT) files to sell EUR denominated 2yr FRN and 3yr notes

• 2yr FRN guidance seen +55-60bps to 3m Euribor.
• 3yr notes seen MS +65bps.

Reverse Yankee issuance of this kind is a long-established pattern: large US investment-grade names, typically through their captive finance arms, tap euros to diversify funding and take advantage of favourable cross-currency hedging economics back into dollars. The split structure is the usual one for short-dated corporate supply, a floating tranche priced off Euribor for bank and money-market accounts and a fixed tranche quoted on mid-swaps for real-money buyers, and the relative demand between the two is itself a read on where sponsorship sits. Spreads at these tenors for frequent high-grade issuers tend to price close to secondary fair value with a modest new-issue concession, and guidance tightening through the bookbuild is the norm when demand is orderly. What carries signal is the all-in hedged cost versus comparable dollar funding, since that differential, rather than the euro coupon, is what drives repeat issuance from this peer set. Follow-ons are final pricing versus guidance, book size, and whether other US corporates read the print as a green light to add to euro supply.