Interpool, Inc. (Princeton, N.J.) announced that its wholly-owned subsidiary, Interpool Containers Limited (ICL), has entered into an agreement to sell a substantial majority of its operating lease portfolio of standard dry marine cargo containers to a newly formed subsidiary of an investor group based in Switzerland. Following the sale, Interpool and its 50%-owned subsidiary, Container Applications International, Inc. (CAI), will perform management services on behalf of the purchaser for the containers being sold, and Interpool will continue its active businesses of leasing cargo containers and container chassis to shipping lines and other customers.
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.
Interpool's container sale involves a total of approximately 273,000 standard dry marine cargo containers owned by ICL, as well as an assignment of all of ICL's rights under existing leases for this equipment. The purchase price is approximately $515 million, which is expected to result in an after-tax gain for Interpool of approximately $58 to $62 million during the first quarter of 2006, subject to closing adjustments and final accounting review. Interpool and CAI have entered into a management agreement with the purchaser whereby they will continue to interface with their customers and will provide long term management services, including billing, collecting, lease renewal, operations and disposition activities for the sale portfolio, for a management fee.
The container sale is expected to close on March 31, 2006. ICL intends to use the proceeds of the sale to reduce indebtedness and for general corporate purposes, including the acquisition of additional containers for finance and operating leases. The sale agreement does not restrict any future activities that may be engaged in by Interpool or ICL, and Interpool stated that it intends to continue its active container leasing business through ICL.
Source: Interpool, Inc.
