SAFECO is looking for a buyer for its commercial credit and leasing subsidiary, a move that could reduce the amount of debt on SAFECO’s consolidated balance sheet by nearly half. SAFECO Credit Co. specializes in asset-based lending, with significant emphasis on providing financing for heavy equipment used in manufacturing and construction. With $1.7 billion in receivables and operating leases, it generated a pre-tax profit of $19.3 million in 2000. To fund a substantial portion of its credit operation, SAFECO regularly issues commercial paper. As of Dec. 31, 2000, this represented $1.5 billion of SAFECO’s total debt obligations, including capital securities, of $3.1 billion. “Removing this debt from our balance sheet gives us more flexibility, making SAFECO less susceptible to short-term changes in interest rates,” stated Mike McGavick, SAFECO president and CEO.
Was this article valuable?
Here are more articles you may enjoy.
Business Interruption Claims Arising From the Middle East Conflict 
Amish Mother and 6 Children Killed in Explosion and Fire at Pennsylvania Home 
‘The Arms Race Is On’: Chubb’s Greenberg on Mythos, Middle East 
How Niche Insurance Shielded Bad Bunny From Bad Weather From This Issue
