Interpool Sells Equity Interest in Container Applications International
05 Octubre 2006 - 10:15AM
Business Wire
Interpool, Inc. (NYSE: IPX) announced that it has sold its 50%
common equity interest in Container Applications International,
Inc. (CAI) for a total price of $77.5 million, consisting of�$40.0
million in cash and a four-year note in the amount of $37.5
million. The equity interest, which Interpool originally acquired
in 1998 for a purchase price of $12.5 million, was repurchased from
Interpool by CAI effective October 1, 2006. Interpool expects to
record a gain related to the sale of its interest in CAI in the
fourth quarter of 2006. The amount of this gain is dependent upon
CAI�s results for the three months ended September 30, 2006, but is
estimated to be approximately $24.0 million after taxes, subject to
final accounting review. When this gain is combined with
Interpool�s portion of CAI�s net income from 1998 through September
30, 2006, the result is an aggregate after tax return of
approximately $39.0 million above Interpool�s original investment
in CAI of $12.5 million. Interpool and CAI have also entered into a
new long-term Management Agreement under which Interpool will
continue to have the option, under certain circumstances, to use
CAI as manager for shipping containers in Interpool�s fleet that
have been returned by a customer following termination of a
long-term lease in return for payment of a management fee to CAI.
Under the new Management Agreement, Interpool will also have the
right to sell groups of containers to investors and to use CAI as
submanager of these containers. Martin Tuchman, Interpool's
Chairman and Chief Executive Officer, commented, "We believe
this�is an excellent time to sell our equity stake in CAI and
monetize a significant gain over our original investment.�With the
sale of most of our older operating lease container fleet last
March, and an expansion of our internal container operations
capabilities, our reliance upon CAI to manage containers coming off
long-term lease became far less significant today than it was a few
years ago. Although we no longer have an equity stake in CAI, our
new Management Agreement will enable us to continue to enjoy the
strategic benefits of our close relationship with CAI at the
operating level by utilizing their infrastructure as a back-up
manager for short-term units to the extent we choose to do so.� Mr.
Tuchman added, �We remain committed to growing our container
leasing business and serving the needs of our customers, with whom
we have excellent relationships. Currently, our container business
consists of an operating lease fleet of approximately $120.0
million and approximately $300.0 million in direct financing
leases.� The new $37.5 million CAI note held by Interpool will
mature in October 2010, and bears interest at a rate of 7.87%,
increasing by 1.0% every six months, with no cap, until the note is
paid in full. Furthermore, Interpool has the right to convert the
note into shares of CAI's common stock, and to representation on
CAI�s Board of Directors, if the note remains outstanding after two
years, or earlier if it is not fully repaid in connection with any
initial public offering by CAI. The note is subordinated to CAI's
senior debt. Effective October 1, 2006, CAI�s assets and
liabilities, including its debt which amounted to $56.0 million at
June 30, 2006, and its results of operations will no longer be
included in Interpool�s consolidated financial statements. CAI has
also repaid the $3.0 million remaining balance of a subordinated
loan made by Interpool during 1998. Interpool is one of the world's
leading suppliers of equipment and services to the transportation
industry. The company is the world's largest lessor of intermodal
container chassis and a world-leading lessor of cargo containers
used in international trade. Note: This press release and other
press releases and information can be viewed at the Company's
website at www.interpool.com. This Press Release contains certain
forward-looking statements regarding future circumstances. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
contemplated in such forward-looking statements, including in
particular the risks and uncertainties described in the company's
SEC filings. The Company undertakes no obligation to publicly
release any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof. Interpool,
Inc. (NYSE: IPX) announced that it has sold its 50% common equity
interest in Container Applications International, Inc. (CAI) for a
total price of $77.5 million, consisting of $40.0 million in cash
and a four-year note in the amount of $37.5 million. The equity
interest, which Interpool originally acquired in 1998 for a
purchase price of $12.5 million, was repurchased from Interpool by
CAI effective October 1, 2006. Interpool expects to record a gain
related to the sale of its interest in CAI in the fourth quarter of
2006. The amount of this gain is dependent upon CAI's results for
the three months ended September 30, 2006, but is estimated to be
approximately $24.0 million after taxes, subject to final
accounting review. When this gain is combined with Interpool's
portion of CAI's net income from 1998 through September 30, 2006,
the result is an aggregate after tax return of approximately $39.0
million above Interpool's original investment in CAI of $12.5
million. Interpool and CAI have also entered into a new long-term
Management Agreement under which Interpool will continue to have
the option, under certain circumstances, to use CAI as manager for
shipping containers in Interpool's fleet that have been returned by
a customer following termination of a long-term lease in return for
payment of a management fee to CAI. Under the new Management
Agreement, Interpool will also have the right to sell groups of
containers to investors and to use CAI as submanager of these
containers. Martin Tuchman, Interpool's Chairman and Chief
Executive Officer, commented, "We believe this is an excellent time
to sell our equity stake in CAI and monetize a significant gain
over our original investment. With the sale of most of our older
operating lease container fleet last March, and an expansion of our
internal container operations capabilities, our reliance upon CAI
to manage containers coming off long-term lease became far less
significant today than it was a few years ago. Although we no
longer have an equity stake in CAI, our new Management Agreement
will enable us to continue to enjoy the strategic benefits of our
close relationship with CAI at the operating level by utilizing
their infrastructure as a back-up manager for short-term units to
the extent we choose to do so." Mr. Tuchman added, "We remain
committed to growing our container leasing business and serving the
needs of our customers, with whom we have excellent relationships.
Currently, our container business consists of an operating lease
fleet of approximately $120.0 million and approximately $300.0
million in direct financing leases." The new $37.5 million CAI note
held by Interpool will mature in October 2010, and bears interest
at a rate of 7.87%, increasing by 1.0% every six months, with no
cap, until the note is paid in full. Furthermore, Interpool has the
right to convert the note into shares of CAI's common stock, and to
representation on CAI's Board of Directors, if the note remains
outstanding after two years, or earlier if it is not fully repaid
in connection with any initial public offering by CAI. The note is
subordinated to CAI's senior debt. Effective October 1, 2006, CAI's
assets and liabilities, including its debt which amounted to $56.0
million at June 30, 2006, and its results of operations will no
longer be included in Interpool's consolidated financial
statements. CAI has also repaid the $3.0 million remaining balance
of a subordinated loan made by Interpool during 1998. Interpool is
one of the world's leading suppliers of equipment and services to
the transportation industry. The company is the world's largest
lessor of intermodal container chassis and a world-leading lessor
of cargo containers used in international trade. Note: This press
release and other press releases and information can be viewed at
the Company's website at www.interpool.com. This Press Release
contains certain forward-looking statements regarding future
circumstances. These forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those contemplated in such forward-looking
statements, including in particular the risks and uncertainties
described in the company's SEC filings. The Company undertakes no
obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof.
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