SAFECO CREDIT FOR SALE

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.