S&P Asgns Rtg to General American Railcar Corp. III.NEW YORK--(BUSINESS WIRE)--Oct. 22, 1999-- Standard & Poor's-- Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index assigned its double-'A' rating to General American Gen·er·al American n. The speech of native speakers of American English that many consider to be typical of the United States, noted for its exclusion of phonological forms readily recognized as regional or limited to particular social groups and for Railcar Corp. III 1999-1 Pass-Through Trust's 7.76% pass-through certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size , series 1999-1. As with two previous transactions, the rating is based on the stable and predictable rental cash flows generated by specialized railcars, a diversified pool of lessee railcar users, and the ability of General American Transportation Corp. (GATC GATC Guanine, Adenine, Thymine, Cytosine (nucleotides that make up DNA) GATC Georgia Appalachian Trail Club GATC Google Analytics Tracking Code (Google) GATC Genesis at the Crossroads ; triple-'B'-plus/Negative/A-2), as manager, to release the railcars upon lease expiration or repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, . Because of the active role played by GATC, which is also owner of the issuing special-purpose entity Special-Purpose Entity A financing technique in which a company decreases its risk by creating separate partnerships, rather than subsidiaries, for certain holdings and solicits outside investors to take on the risk. , ratings on the certificates could be affected by material changes in GATC's credit quality. Each certificate will represent a fractional undivided interest undivided interest n. title to real property held by two or more persons without specifying the interests of each party by percentage or description of a portion of the real estate. in General American Railcar Corp. III. The property of the trust will consist of US$107,311,000 aggregate principal amount of equipment notes to be issued on a nonrecourse basis by the owner trustee, as trustee of two separate owner trusts in connection with two separate leveraged lease transactions. Proceeds of the offering will be used to finance 75.6% of the cost of the railcars that will be purchased by each owner trust (representing the owner participants) from General American Railcar Corp. III and then leased back to General American Railcar Corp. III. The rating on the pass-through certificates addresses only the payment of interest when due and the payment of principal on the equipment notes, which will be passed through to the certificateholders, according to the rated amortization schedule of the equipment notes and does not address payment of principal according to the scheduled amortization schedule or any other faster rate. In addition, the rating does not address the payment of any make-whole amounts, late payment premiums or interest on overdue amounts. The equipment consists of 2,053 railroad tank cars (92%) and covered hopper cars (8%), manufactured subsequent to March 1998 by Trinity Industries Inc. Demand for these specialized railcars is fairly stable, and multiyear lease terms cushion the impact of cyclical downturns, Standard & Poor's said.--CreditWire |
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