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GE CAPITAL RAILCAR SERVICES PLANS LEASE OF ITEL RAIL FLEET

    GE CAPITAL RAILCAR SERVICES PLANS LEASE OF ITEL RAIL FLEET
    STAMFORD, Conn., Dec. 31 /PRNewswire/ -- GE Capital Railcar Services, a wholly owned subsidiary of GE Capital, announced today its plan to lease the railcar fleet of San Francisco-based Itel Rail.  Itel simultaneously announced its intention to make a public offering, through a newly formed trust, of new debt to be funded from the proceeds of the lease payments by GE Capital Railcar Services.
    The proposed transaction will bring the GE Capital Railcar owned and managed fleet to approximately 140,000 railcars.  The combined fleet will be the most diverse and youngest fleet in the industry.
    Robert W. Speetzen, president of GE Capital Railcar Services stated, "This lease will add a very desirable railcar portfolio to our fleet and will further enhance our capability to provide premium service levels to both Itel and GE Capital Railcar customers.  In that regard, all of Itel Rail's customer agreements will be honored by GE Capital Railcar.
    "This transaction will broaden GE Capital's position in value-added asset management businesses which have been major contributors to our profitable growth."
    The transaction is a 12-year lease with a fixed price purchase option, which would effectively result in a combination of the railcar operations of the two companies, with GE Capital Railcar as lessee providing the management of the cars and service to existing lessees.
    GE Capital Railcar Services, a wholly owned subsidiary of GE Capital, is one of the major railcar leasing companies in North America, currently owning and operating more than 68,000 railcars, 10 repair facilities, and six wheel remanufacturing shops.
    GE Capital, headquartered in Stamford, Conn., is one of the nation's largest diversified financial services companies with over $77 billion in assets.
    The completion of the transaction is conditioned upon the satisfaction of certain conditions and requirements, and the ability of Itel to successfully complete the public offering.  There can be no assurance that these transactions will be completed.
    -0-              12/31/91
    /CONTACT:  Marian R. Powell of GE Capital Railcar Services, 312-853-5443, or Lisa Berger of GE Capital, 203-357-4346/ CO:  GE Capital Railcar Services; Itel Rail ST:  Connecticut, California IN:  TRN SU: FC-OS -- NY004 -- 5817 12/31/91 09:19 EST
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Publication:PR Newswire
Date:Dec 31, 1991
Words:368
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