Finning International Inc.

Finning International Inc.

May 09, 2008 09:00 ET

Finning Announces Pricing of $600 Million of Medium Term Notes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2008) - Finning International Inc. ("Finning") (TSX:FTT) announced today the pricing of two tranches of medium term notes for aggregate gross proceeds of C$600 million.

The two tranches of medium term notes include $250 million in 5.16% Medium Term Notes due September 3, 2013 and $350 million 6.02% Medium Term Notes due June 1, 2018, and will rank pari passu with existing senior unsecured obligations of Finning. The notes will be issued at a discount and as such will have a yield of 5.163% and 6.028% respectively.

Proceeds will be used for debt repayment, including the repayment of the Company's existing $200 million principal amount of 7.40% Medium Term Notes maturing in June 2008 as well as outstanding commercial paper borrowings.

Closing of the offering is expected to occur on or about May 13, 2008.

The offering of these medium term notes is made pursuant to Finning's short form base shelf prospectus dated May 5, 2008 and a pricing supplement relating to these medium term notes will be filed with the securities regulatory authorities in each of the Provinces of Canada. The pricing supplement will contain more details of the specific terms of the two tranches being offered.

RBC Dominion Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc. and TD Securities Inc. are acting as agents with respect to this offering of medium term 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, nor has any authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The securities are not being offered in the United States.

Finning International Inc. is the world's largest Caterpillar equipment dealer. The Company sells, rents and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and South America (Chile, Argentina, Bolivia and Uruguay). Headquartered in Vancouver, British Columbia, Canada, Finning International Inc. is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). For additional information please visit our website at

This release may contain forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.

Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report.

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