Printer Friendly

ACF Industries Enters Into Railcar Lease With GE Capital Railcar

NEW YORK, March 10 /PRNewswire/ -- ACF Industries, Incorporated, through a newly formed (98.737%-owned by ACF) limited liability company, has entered into 16-year leases of nearly 35,500 railcars to a subsidiary of GE Capital. ACF will continue to lease its remaining fleet on its traditional basis in accordance with the high level of service it has maintained throughout its 98-year history. ACF will also continue to operate its 3 railcar manufacturing and 8 railcar repair facilities. ACF Industries received the proceeds of an approximately $1.25 billion private debt offering secured by the railcars leased to GE and the associated GE lease rentals.

ACF is a major independent manufacturer of specialized railcars and related products and is a significant lessor of railcars in North America. Carl C. Icahn, owner of ACF Industries, stated that "This arrangement with GE Capital gives ACF the wherewithal to remain a large and dominant factor in the railcar business while obtaining the benefits of using a large pool of capital without concern over potential short-term economic influences."

Mr. Icahn noted that GE Capital has contractually agreed to continue to use ACF's repair facilities for at least five years and has entered into a non-exclusive five-year contract to purchase ACF-manufactured railcars.

SOURCE ACF Industries, Incorporated
 -0- 03/10/97


/CONTACT: Silvia Herrschaft of ACF, 212-702-4309/

(GE)

CO: ACF Industries, Incorporated; GE Capital ST: New York IN: TRN SU:

RC-MP -- NYM089 -- 3106 03/10/97 10:40 EST http://www.prnewswire.com
COPYRIGHT 1997 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 10, 1997
Words:247
Previous Article:Fleet Bank Provides Funds to Quincy's Fore River Shipyard
Next Article:Alliance on Verge of $1 Billion Airfare Savings for Business Travelers; First of Historic Summits Planned to Address Systemic Competitive Problems
Topics:

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters