Interpool (NYSE:IPX)
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From Jul 2019 to Jul 2024
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.