Commercial Paper Issuer

Transcription

1 Merrill Lynch Money Markets Inc. PROGRAM REPORT Commercial Paper Issuer January 16, 2004 DESCRIPTION OF ISSUER DEALERS CAPITAL ACCESS TRUST, INC. COMMERCIAL PAPER RATINGS*: A-1/F1 Dealers Capital Access Trust, Inc. ("DCAT"), a Tennessee corporation, is a special-purpose, bankruptcyremote corporation. DCAT was formed in 1992 to issue commercial paper, the proceeds of which will be used to fund loans to eligible Caterpillar Inc. ("Caterpillar") or Caterpillar Overseas S.A. ("CSARL") equipment dealers. Loans made by DCAT to eligible equipment dealers shall have the same maturity as the underlying commercial paper and will not exceed a term of nine months. Credit Support for DCAT's loans will be provided by Caterpillar Financial Services Corporation ("CFSC") under the terms of a Dealer Loan Purchase Agreement, as amended September 30, 2003 ( the Agreement ). Eligible equipment dealers who wish to borrow from DCAT must submit an Application for Approval Letter to CFSC along with relevant financial information. Subject to CFSC's approval, an Approval Letter will be issued to the equipment dealer and notice will be given to DCAT. The Approval Letter will establish the maximum loan amount ( Approved Amount") for each dealer as well as the period during which loans may be made ("Approval Period"). DCAT's operations will be managed by the Cooperative Association of Tractor Dealers, Inc. ("CATD") under terms of the Management Agreement. DEALER LOAN PURCHASE AGREEMENT Under the terms of the Agreement entered into by DCAT with CFSC, in the event that insufficient loan payments are received at maturity or that dealer's loan (s) is accelerated or not paid at maturity, CFSC is obligated to immediately purchase the loan(s) at the face amount (principal plus interest to maturity). CFSC's obligations under the Agreement will be limited to the sum of the Approved Amounts under all Approval Letters. CFSC will provide bank liquidity lines necessary to support DCAT outstanding commercial paper. THE NOTES The Notes will be issued in book-entry form in the book-entry system of The Depository Trust Company. FQ *Such ratings are only accurate as of the date hereof, as they have been obtained with the understanding that Standard and Poors s Ratings Services and Fitch, Inc. will continue to monitor the credit of the Company and make future adjustments to such ratings to the extent warranted. The ratings may be changed, superseded or withdrawn, and therefore, a prospective purchaser should check the current ratings before purchasing the Notes. The information set forth herein was obtained from sources believed to be reliable, but its accuracy is not guaranteed. Neither the information, nor any opinion expressed constitutes a solicitation for the purchase or sale of any instruments. The information contained herein will not typically be distributed or updated upon each new sale of commercial paper notes, although the information will be distributed from time to time. Further, the information herein is not intended as substitution for the Investor's own inquiry into the creditworthiness of the Issuer, and if applicable, another party providing credit support for the commercial paper notes, and Investors are encouraged to make such inquiry.

2 AUDITORS Caterpillar Financial Services Corporation Pricewaterhouse Coopers LLP Dealers Capital Access Trust, Inc. McGladrey & Pullen, LLP RATINGS Company Security Rating Rating Organization Dealers Capital Access Trust, Inc. Commercial Paper Commercial Paper A-1 F1 Standard & Poor's Ratings Group Fitch, Inc. Caterpillar Financial Services Corporation Commercial Paper A-1 Standard & Poor's Ratings Group Commercial Paper F1 Fitch, Inc. Commercial Paper P-1 Moody's Investor Service, Inc. CATERPILLAR FINANCIAL SERVICES CORPORATION Caterpillar Financial Services Corporation (CFSC) is a wholly owned finance subsidiary of Caterpillar Inc., a Fortune 500 company and the world's largest manufacturer of construction and mining equipment, natural gas and diesel engines, and industrial gas turbines. CFSC is a Delaware corporation organized in 1981 and is headquartered in Nashville, Tennessee. CFSC provides retail financing alternatives to customers and dealers around the world for Caterpillar and non-competitive related equipment, wholesale financing to Caterpillar dealers and purchases short-term dealer receivables from Caterpillar. Retail financial plans include: Tax leases which are classified as either operating or finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, CFSC is considered the owner of the equipment. Finance (non-tax) leases where the lessee is considered the owner of the equipment during the term of the contract and that either require or allow the customer to purchase the equipment for a fixed price at the end of the term. Installment sale contracts which are equipment loans that enable customers to purchase equipment with a down payment or trade-in and structure payments over time. Working capital loans that allow customers and dealers to use their Caterpillar equipment as collateral to obtain financing for other business needs. Governmental lease-purchase plans in the U.S. that offer low interest rates and flexible terms to qualified non-federal government agencies. Wholesale finance plans include: Inventory/rental programs which provide assistance to dealers by financing their inventory, rental fleets and rental facilities. Short-term dealer receivables purchased by CFSC from Caterpillar at a discount. New retail financing during 2002 totaled $7.3 billion. CFSC's portfolio totaled $ 16.5 billion December 31, Net income for 2002 was $193 million on revenues of $1,582 million compared to 2001 net income of $212 million on revenues of $1,620 million. 2

3 ADDITIONAL INFORMATION If you require additional information or have questions, please write or call to: Dolores Coutts President Dealers Capital Access Trust, Inc Friendship Boulevard Suite 340 Chevy Chase, MD Telephone (301) Fax (301) OR Merrill Lynch 4 World Financial Center 11 th Floor New York, NY Attn: Marketing Department Telephone: (212) Facsimile No.: (212)

4 Caterpillar Financial Services Corporation Consolidated Statement of Financial Position at December 31, (dollars in million, except for per share data) Assets: Cash and cash equivalents $100 $119 $101 Finance receivables Retail notes receivable 3,979 3,377 2,964 Wholesale notes receivable 2,698 2,279 2,316 Notes receivable from Caterpillar Inc Investment in finance leases 8,421 7,904 7,781 15,433 13,882 13,451 Less: unearned income 995 1,062 1,129 Allowance for credit losses ,231 12,643 12,159 Equipment on operating leases, less accumulated depreciation 1,961 1,477 1,148 Deferred income taxes Other assets Total Assets $17,105 $14,994 $13,805 Liabilities and stockholder's equity: Payable to dealers and others $115 $115 $89 Payable to Caterpillar-borrowings Payable to Caterpillar-other Accrued interest payable Income taxes payable Other liabilities Short term borrowings 3,936 3,716 3,334 Current maturities of long term debt 3,654 3,058 2,558 Long term debt 6,368 6,044 5,749 Deferred income taxes Total Liabilities $15,290 $13,455 $12,308 Commitments and contingent liabilities Common stock-$1 par value Authorized 2,000 shares Issued and outstanding: one share $745 $745 $745 Retained earnings 1, Accumulated other comprehensive income (77) (160) (90) Total stockholder s equity 1,815 1,539 1,497 Total liabilities and stockholder s equity $17,105 $14,994 $13,805 4

5 Caterpillar Financial Services Corporation Consolidated Statement of Profit for the years ended December 31, (dollars in millions) Revenues: Wholesale finance $173 $278 $261 Retail finance Rental Other Total Revenues $1,582 $1,620 $1,443 Expenses: Interest $544 $688 $744 Depreciation on assets lesased to others General, operating, and administrative Provision for credit losses Other expense Total Expenses 1,279 1,289 1,200 Profit before income taxes Provision for income taxes Net Profit $193 $212 $159 5

6 Caterpillar Financial Services Corporation Consolidated Statement of Cash Flows for the years ended December 31, (millions of dollars) Cash Flow from operating activities: Profit $193 $212 $159 Adjustments for non-cash items: Depreciation Amortization of purchased discount (129) (241) (204) Provision for credit losses Deferred income taxes Other (55) (4) 49 Changes in assets and liabilities: Receivables from customers and others - (45) 21 Payable to dealers and others (6) 29 (35) Payable to Caterpillar other 6 (10) 6 Accrued interest payable Income taxes payable - 9 (1) Other assets and liabilities, net (23) (12) 25 Net cash provided by operating activities $592 $414 $369 Cash flow from investing activities: Acquisitions, net of cash acquired (245) - - Expenditures for equipment on operating leases (1,075) (865) (669) and for non-leased equipment Proceeds from disposals of equipment Additions to finance receivables (17,623) (18,328) (15,818) Collections of finance receivables 14,209 14,529 11,233 Proceeds from sales of receivables 2,310 3,079 3,346 Notes receivable from Caterpillar Inc. (82) Investments in Partnerships 1 (265) - Other, net 10 (8) (2) Net cash used for investing activities (2,022) (1,431) (1,671) Cash flow from financing activities: Payment of dividends - (100) - Payable to Caterpillar-borrowings 571 (91) 24 Proceeds from long term debt 3,889 3,383 3,748 Payments on long-term debt (3,114) (2,598) (2,948) Short-term borrowings, net Net cash provided by financing activities 1,399 1,038 1,323 Effect of exchange rates on cash 12 (3) (5) Net change in cash and cash equivalents (19) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 100 $119 $101 Note to Consolidated Financial Statements-Certain amounts for prior periods have been reclassified to conform to the 2002 presentation. All short-term investments, which consist primarily of highly liquid investments with original maturities of less than three months, are considered to be cash equivalents. 6