Printer Friendly

XTRA INC. DEBT RATING RAISED TO BBB+ BY DUFF & PHELPS

 CHICAGO, April 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised the rating for the medium-term notes of XTRA Inc. to `BBB+' (Triple-B-Plus) from `BBB' (Triple-B). This upgrade affects approximately $80 million of medium-term notes.
 The upgrade reflects XTRA's sale of 650,000 shares of common stock at $89 1/2 per share. Depending upon exercise of an over-allotment provision for up to an additional 97,500 shares, the offering will generate proceeds of $55-65 million. The stock offering substantially reduces balance sheet leverage ratios and restores XTRA's financial flexibility. The balance sheet was negatively impacted by the acquisition of Strick Lease on Oct. 2, 1992 for $114 million cash and the assumption of approximately $236 million in debt. This transaction raised the debt to common equity ratio from 1.3:1 at Sept. 30, 1992, to 2.8:1 at Dec. 31, 1992. Use of the common stock sale proceeds to reduce debt will lower the debt to equity ratio to under 2.0:1. Importantly, the Strick acquisition has been assimilated smoothly and has resulted in improved operating efficiencies and profitability. Cash flow from operations is substantial and should result in further reductions in balance sheet leverage going forward.
 XTRA leases transportation equipment, primarily over-the-road trailers, and intermodal equipment, including intermodal trailers, domestic containers and chassis. At Dec. 31, 1992, XTRA had $1.1 billion of revenue equipment on lease.
 -0- 4/1/93
 /CONTACT: Daryl R. Leehaug of Duff & Phelps Credit Rating Co., 312-368-3124/
 (XTR)


CO: XTRA Inc. ST: IN: TRN SU: RTG

SM -- NY099 -- 2171 04/01/93 15:42 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 1, 1993
Words:265
Previous Article:IMC FERTILIZER REACHES SETTLEMENT WITH ANGUS CHEMICAL AND ITS INSURER, ENDING TEXAS LITIGATION
Next Article:CALGENE APPLAUDS CLINTON ADMINISTRATION SUPPORT FOR AG BIOTECH; USDA RULES WILL ACCELERATE & SIMPLIFY BIOTECH PLANT FIELD TESTS
Topics:


Related Articles
CONSECO, INC. $175 MILLION SENIOR NOTE ISSUE RATED 'BBB'
DUFF & PHELPS UPGRADES DUQUESNE LIGHT COMPANY SENIOR DEBT TO 'A-'
XTRA INC. DEBT RATING ADDED TO RATING WATCH-FAVORABLE BY DUFF & PHELPS
RJR NABISCO, INC. SENIOR NOTES RATED 'BBB' BY DUFF & PHELPS, REMAINS ON RATING WATCH -- UNFAVORABLE
DUFF & PHELPS UPGRADES NIPSCO INDUSTRIES
DUFF & PHELPS CREDIT RATING CO. REAFFIRMS XTRA INC.'S CREDIT RATINGS
DCR ASSIGNS 'BBB+' PRELIMINARY RATING TO XTRA CORP.'S $800 MILLION SHELF REGISTRATION
DCR Places Interpool, Inc.'s Unsecured Senior Debt and Trust Preferred Stock on Rating Watch - Down
DCR Places XTRA, Inc.'s Debt on Rating Watch - Down
DCR Reaffirms XTRA, Inc.'s Debt Removes Rating Watch - Down.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters