Finning International Inc.
TSX : FTT

Finning International Inc.

September 14, 2017 15:16 ET

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--(Marketwired - Sept. 14, 2017) - 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.

About Finning:

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.

Forward-Looking Disclaimer

This news release contains statements about Finning's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what Finning knows and expects today to make a statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the gross proceeds of the issuance of Offering Notes; the timing of the closing of the offering of Offering Notes and the redemption of Redeemed Notes; and the intended use of proceeds of the issuance of the Offering Notes. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.

Unless otherwise indicated by us, forward-looking statements in this news release reflect Finning's expectations as at the date of this news release. Except as may be required by Canadian securities laws, Finning does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking statements and that Finning's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, Finning cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by these forward-looking statements include: general economic and market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, Finning's products and services; Finning's ability to maintain its relationship with Caterpillar Inc.; Finning's dependence on the continued market acceptance of its products, including Caterpillar products, and the timely supply of parts and equipment; Finning's ability to continue to improve productivity and operational efficiencies while continuing to maintain customer service; Finning's ability to manage cost pressures as growth in revenue occurs; Finning's ability to reduce costs in response to slowing activity levels; Finning's ability to attract sufficient skilled labour resources as market conditions, business strategy or technologies change; Finning's ability to negotiate and renew collective bargaining agreements with satisfactory terms for Finning's employees and Finning; the intensity of competitive activity; Finning's ability to raise the capital needed to implement its business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; the integrity, reliability and availability of, and benefits from information technology and the data processed by that technology; and Finning's ability to protect itself from cybersecurity threats or incidents. Forward-looking statements are provided in this news release for the purpose of giving information about management's current expectations and plans and allowing investors and others to get a better understanding of Finning's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this news release are based on a number of assumptions that Finning believed were reasonable on the day Finning made the forward-looking statements. Refer in particular to the Outlook section of the annual MD&A for forward-looking statements. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this news release are discussed in Finning's current annual information form ("AIF") and in the annual management discussion & analysis ("MD&A") for the financial risks.

Finning cautions readers that the risks described in the MD&A and the AIF are not the only ones that could impact Finning. Additional risks and uncertainties not currently known to Finning or that are currently deemed to be immaterial may also have a material adverse effect on Finning's business, financial condition, or results of operations.

Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date of this news release. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Finning therefore cannot describe the expected impact in a meaningful way or in the same way Finning presents known risks affecting its business.

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