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Moody's Investors Service has withdrawn the Caa1 rating for TRAC Intermodal LLC's planned $485 million senior secured second lien notes.
Meanwhile, United Arab Shipping Company (UASC), a leading container shipping line and emerging global carrier appointed TRAC Intermodal as its sole chassis provider across the United States.
Keith said, “We are pleased to partner with UASC for a nationwide agreement to be their exclusive chassis supplier. At TRAC Intermodal, we look to increase supply chain efficiency at every opportunity and working with a partner of UASC’s caliber in efficiency, allows us to do this in terms of chassis processes in the US.”
