DBRS Rates Finning’s $300 Million U.S. Private Placement at A (low)

DBRS has today assigned a rating of A (low), with a Stable trend, to Finning International Inc.’s (Finning) $300 million U.S. private placement of senior unsecured notes (the Notes). The Notes consist of three series: (1) $50 million of 4.18% notes due April 3, 2022, (2) $50 million of 4.28% notes due April 3, 2024, and (3) $200 million of 4.53% notes due April 3, 2027.

The Notes will rank pari passu with Finning’s existing senior unsecured obligations. Proceeds are expected to be used to fund the purchase, from Caterpillar Inc., of the distribution and support business, formerly carried on by Bucyrus International Inc., in Finning’s territories in South America. (See DBRS’s press release dated January 18, 2012, and rating report dated January 23, 2012, for additional information.)

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Capital Goods Dealership Industry, which can be found on our website under Methodologies.