Sea Containers Rtgs Put on S&PWatch Pos After Anncmnt.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 9/29/97 -- Standard & Poor's today placed its ratings of Sea Containers Ltd Sea Containers Ltd. is a Bermuda-registered company which operates two main business areas: transport and container leasing. In March 2006 the company sold its share of Orient-Express Hotels Ltd. . and Orient Express Hotels Inc. on CreditWatch with positive implications (see list below). Approximately $486 million of rated securities are affected. The CreditWatch listing is due to the company's announcement that it has signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with GE Capital Services (a unit of General Electric Capital Corp. -- triple-'A'/stable/'A-1'-plus) to create GE SeaCo Ltd., a joint venture that will operate both entities' marine cargo containers. The combined fleet, which will be one of the largest in the industry, will comprise approximately 1.2 million TEU's (twenty foot equivalent units) consisting of specialized equipment, as well as standard dry cargo containers. It will be leased from both of the existing owners, who will continue to own the equipment. Profits will be apportioned ap·por·tion tr.v. ap·por·tioned, ap·por·tion·ing, ap·por·tions To divide and assign according to a plan; allot: "The tendency persists to apportion blame as suits the circumstances" approximately 30% to Sea Containers and 70% to GE Capital. Going forward, profits from new equipment acquired by GE Seaco will be shared equally by the two partners. A new revolving credit will fund new purchases, with 50% guaranteed by GE Capital Services and 50% guaranteed by Sea Containers. This should result in lower funding costs for the new company than Sea Containers' current rates. In addition, at closing, GE Capital Services will invest $10 million in common stock and $15 million in convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". of Sea Containers. Sea Containers is one of the world's largest lessors of specialized marine cargo containers. Its other various businesses include several ferry, hovercraft Hovercraft: see air-cushion vehicle. , and catamaran catamaran (kăt'əmərăn`), watercraft made up of two connected hulls or a single hull with two parallel keels. Originally used by the natives of Polynesia, the catamaran design was adopted by Western boat builders in the 19th cent. services; port operations in England; ownership and operation of luxury hotels and tourist trains worldwide; a passenger railroad line that operates between London and Scotland; and assorted other smaller businesses. -- CreditWire RATINGS PLACED ON CREDITWATCH WITH POSITIVE IMPLICATIONS Sea Containers Inc. Corporate credit rating BB+ Senior unsecured debt BB- Subordinated debt BB- Preferred stock B+ Orient Express Hotels Inc.* Subordinated debt BB- *Debt guaranteed by Sea Containers Inc. CONTACT: 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 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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