Vancouver-based Finning International last week agreed to sell substantially all of its conditional sales contract portfolio in Canada to Caterpillar Financial Services Limited. The proceeds of the sale will be approximately U.S. $64 million.

The company also entered into a securitization program for its accounts receivable portfolio in Canada. The program size is a maximum of U.S. $77 million. Finning has sold U.S. $19 million as an initial amount under the program, and is expecting to sell additional amounts in early 2003.

Commenting on both transactions, Doug Whitehead, president and CEO of Finning said, "The sale of the loan portfolio will generate close to C$100 million (U.S. $64 million) in cash that will be applied in the short term to reduce debt. Ultimately, the funds will be redeployed into new acquisitions, growth initiatives and other opportunities to increase value to our shareholders."

Finning is No. 17 on the RER 100>.