FINNING ANNOUNCES PRICING OF $200 MILLION OF 2.84% SENIOR UNSECURED NOTES AND REDEMPTION OF $350 MILLION OF 6.02% MEDIUM TERM NOTES DUE JUNE 1, 2018
Vancouver, British Columbia – Finning International Inc. (TSX: FTT) (“Finning”) announced today that it has priced $200 million principal amount of 2.84% Senior Unsecured Notes due September 29, 2021 (the “Offering Notes”), which will rank pari passu with existing senior unsecured obligations of Finning. Interest on the Offering Notes is payable semi-annually, commencing on March 29, 2018.
Closing of the offering of the Offering Notes is expected to occur on or about September 29, 2017. This offering is being made pursuant to exemptions from the prospectus requirements of applicable securities laws of the provinces and territories of Canada. Purchasers of Offering Notes will be obliged to establish their qualification to invest in accordance with the requirements of the securities laws of the jurisdiction in which they reside. As this offering is being made pursuant to exemptions from prospectus requirements of applicable securities laws, there will be restrictions on the resale of the Offering Notes.
Proceeds from the issuance of the Offering Notes will be used to repay outstanding indebtedness. Specifically, Finning has issued a notice for the redemption prior to maturity of all of its outstanding $350 million principal amount 6.02% Medium Term Notes due June 1, 2018 (the “Redeemed Notes”). The redemption date for the Redeemed Notes as set forth in the notice of redemption is October 16, 2017. Pursuant to the terms of the Redeemed Notes, the redemption price for the Redeemed Notes will be $1,048.056 per $1,000 principal amount of Redeemed Notes. The payment above principal is made up of $25.460 in early redemption premium and $22.596 in accrued and unpaid interest to the date of redemption per $1,000 principal amount of Redeemed Notes. The remaining funds necessary to redeem the Redeemed Notes will come from Finning’s cash on hand.
CIBC Capital Markets, RBC Capital Markets and Scotiabank (as joint bookrunners), together with a syndicate consisting of BMO Capital Markets, Citigroup Global Markets Canada Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Merrill Lynch Canada Inc., MUFG Securities (Canada), Ltd. and Wells Fargo Securities Canada, Ltd. are acting as agents with respect to the offering of the Offering Notes.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority. The securities are not being offered in the United States.
Finning International Inc. is the world’s largest Caterpillar equipment dealer delivering unrivalled service to customers for over 80 years. Finning sells, rents and provides parts and service for equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in Western Canada, Chile, Argentina, Bolivia, and the United Kingdom and Ireland.
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Vice President, Investor Relations and Corporate Affairs