FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of a Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month(s) of: December 1, 1998
NEWCOURT CREDIT GROUP INC.
BCE Place, 181 Bay Street
Suite 3500, P.O. Box 827
Toronto, Ontario
Canada, M5J 2T3
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]
Form 20-F / / Form 40-F /X/
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.]
Yes / / No /X/
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b)]
82-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: December 1, 1998
NEWCOURT CREDIT GROUP INC.
By: John P. Stevenson
Corporate Secretary
News Release
For immediate release:
Trading Symbol: NCT Contact: Robyn Matsumoto
Exchange Listings: Toronto Corporate Affairs
Montreal (416) 594-5308
New York
Snap-on Incorporated and Newcourt Credit Group
Expanding Relationship with Enhanced Partnership
Kenosha, Wisconsin, and Toronto, Ontario, December
2, 1998 -- Snap-on Incorporated (NYSE: SNA) and
Newcourt Credit Group (TSE, ME, NYSE: NCT )
announced they have signed a definitive agreement
to form a new entity, Snap-on Credit LLC ("Snap-on
Credit"), which will be the preferred provider of
financial services to Snap-on's global dealer and
customer network. The closing will occur following
completion of various operating documents and is
expected on or about January 3, 1999. The entity
will be 50 percent owned by each company.
Under the agreement, Snap-on Credit will combine
the operations and commitments of Snap-on's
existing captive finance program with Newcourt's
expertise of providing tailored, flexible financing
solutions to industry leaders. The new entity will
employ and primarily be staffed by personnel from
Snap-on, with certain functions staffed by
personnel from Newcourt. The operations will be
established initially in the United States early in
1999, and expanded globally thereafter.
The new partnership is a significant expansion of
the existing relationship between the two
companies. Since the relationship began in 1996,
Newcourt has provided leasing services to a segment
of Snap-on's finance customers. Under the new
arrangement, Newcourt will make funding available
to Snap-on Credit to finance all of Snap-on's
current and new customers.
"Providing financing to our customers is an
important link in Snap-on's value chain. This
partnership is good for our customers, our dealers
and our shareholders," said Robert A. Cornog,
Chairman, President and Chief Executive Officer of
Snap-on Incorporated. "Over time, it will enable
Snap-on to offer more financial products to more
types of customers in more geographies than is
possible under our current structure. The venture
also will reduce Snap-on Incorporated's invested
capital, thereby improving our economic profit."
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"The new alliance reflects the success of our
existing relationship with Snap-on," said Steven
Hudson, Newcourt's Chief Executive Officer.
"Combining our individual strengths, we have
created an innovative solution to meet the
industry-specific financing needs of Snap-on's
global dealer and customer network."
"Our partnership with Snap-on is a significant step
in Newcourt's strategy of creating growing and
profitable alliances with industry leaders," said
Bradley Nullmeyer, President, Newcourt Financial.
"As one of Newcourt's largest vendor finance
relationships, this partnership offers exciting
potential and demonstrates our ability to grow
organically with our customers."
"Newcourt has proven to be an outstanding partner
for Snap-on. Our previous successful experience
with Newcourt made it our first choice for this
venture," added Cornog. "With its entrepreneurial,
customer-focused approach, Newcourt has
demonstrated its commitment to work in concert with
Snap-on to tailor financing solutions specific to
the unique needs of our dealer and customer base."
Through a series of transactions expected to
commence in December 1998, Newcourt is expected to
purchase, with certain recourse provisions, Snap-
on's previously securitized installment receivables
as well as those currently on Snap-on's balance
sheet. For Snap-on, the sales will result in cash
premiums; the recognition of the accounting gains
will be determined by the timing of the
transactions and the expiration of the recourse
provisions.
The formation of Snap-on Credit will result in a
reduction in the asset intensity of
Snap-on Incorporated's balance sheet from its
present level. Snap-on anticipates the transaction
will be neutral with respect to its earnings in
1999.
Newcourt Credit Group is one of the world's leading
sources of commercial and corporate asset-based
financing with owned and managed assets of Cdn$34.4
billion (US$22.4 billion) and global capability in
26 countries.
<PAGE>
Snap-on Incorporated is a US$1.7 billion leading
global developer, manufacturer and distributor of
tool and equipment solutions for professional
technicians, motor service shop owners, specialty
repair centers, original equipment manufacturers,
and industrial tool users worldwide. Product lines
include hand and power tools, diagnostics and shop
equipment, tool storage units, diagnostics
software, and other solutions for the
transportation service industry.
