Interpool's $75M Notes Rated 'BB+' by S&P; Outlook Pos.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/6/97-- Standard & Poor's today has assigned its double-'B'-plus rating to Interpool Inc.'s $75 million notes due 2007, a Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. issue with registration rights. The company's corporate credit rating is triple-'B'-minus. The notes are rated below the issuer's corporate credit rating due to the substantial amount of secured debt in the company's capital structure. Interpool's ratings reflect the company's position as a medium-sized marine cargo container lessor One who rents real property or Personal Property to another. A lessor of land is a landlord. Cross-references Landlord and Tenant. lessor n. the owner of real property who rents it to a lessee pursuant to a written lease. and the second-largest intermodal chassis lessor in the U.S., and its relatively good financial profile. Interpool's two major operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon -- Interpool Ltd., the marine cargo container lessor, and Trac Lease Inc., the chassis lessor -- rent equipment through operating and finance leases, primarily on a long-term basis. Long-term leases minimize the impact of economic cycles and help to achieve higher fleet utilization and more stable and predictable earnings than do shorter-term leases. However, long-term leases typically command lower rates, particularly during periods of strong demand. Intermodal transportation of containerized con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. cargo has grown significantly over the last several decades and marine cargo container leasing companies such as Interpool have benefited and grown as a result. This trend is expected to continue going forward, despite cyclicality of the industry. Interpool's financial profile is fairly good, with steady earnings and cash flow on a modest, but growing, revenue base. Lease-adjusted debt to capital is expected to remain in the high 60% area, conservative for a transportation equipment lessor. OUTLOOK: Positive. Continued strong earnings and cash flow performance, and an increasing portion of revenues from stable full payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. leases, could lead to a ratings upgrade, Standard & Poor's said. -- CreditWire CONTACT: Philip Baggaley, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-1309 Betsy R Snyder, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , New York (1) 212-208-1585 |
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