TRAC Intermodal Mulls Sale or IPO
TRAC Intermodal LLC is exploring a sale or an initial public offering (IPO) after pulling a $485 million bond offering last week, reports WSJ quoting the chief executive Keith Lovetro. Princeton, N.J.-based TRAC, one of the largest leasing companies for trucking equipment, owns about 315,000 intermodal chassis —steel frames with wheels that hook up to truck tractors. TRAC enlisted Morgan Stanley to sell the debt, with $325 million earmarked for a dividend to private equity firm Fortress Investment Group LLC, which bought the company in 2007, earlier this month. However, investor demand was low, forcing TRAC to cancel the sale on March 22. Moody's Investors Service has withdrawn the Caa1 rating for TRAC Intermodal LLC's planned $485 million senior secured second lien notes.
Horizon Lines Expands Board of Directors
Board to expand to eleven from eight; seven New Board Members Join Four Existing Directors; Four Directors Retire. Horizon Lines, a domestic ocean shipping company, today announced that it will expand its Board of Directors to 11 members from eight, effective November 25, 2011. In conjunction with the expansion, seven new directors will be appointed and four of the existing eight directors will retire. • Jeffrey A. Brodsky, Kurt M. Cellar, Carol B. Hallett, James LaChance, Steven L. Rubin, Martin Tuchman and David N. Weinstein will join the board as independent directors.
Fortress to Acquire Stelmar Shipping Ltd.
Stelmar Shipping Ltd. announced that its Board of Directors has unanimously approved a definitive agreement for Stelmar to be acquired by affiliates of Fortress Investment Group LLC (collectively "Fortress") in a merger transaction for $38.55 per share in cash. The total value of the transaction is approximately $677 million in cash. The price represents a premium of 55% over the closing price of Stelmar's common stock on May 14, 2004, the last trading day prior to the announcement by OMI Corporation of a proposal for a business combination involving Stelmar, and a premium of 8% over the closing price of Stelmar's common stock on September 17, 2004, the last trading day prior to this announcement.
Stelmar Shipping Ltd. Commences Mailing of Proxy Materials in Connection with Pending Merger
Stelmar Shipping Ltd. announced that it has commenced mailing proxy materials relating to a special meeting of Stelmar shareholders to be held at InterContinental The Barclay New York, 111 East 48th Street, New York, New York on Tuesday, November 16, 2004 at 10:00 a.m. (EST) for the purpose of voting upon the approval and authorization of the previously announced merger agreement between Stelmar and affiliates of Fortress Investment Group LLC. Stelmar anticipates that the merger will become effective as promptly as practicable after the special meeting, subject to its approval by shareholders.
