Icahn Enterprises L.P. announced the entrance into a definitive agreement to sell its indirectly wholly-owned subsidiary American Railcar Leasing LLC to SMBC Rail Services LLC (SMBC Rail), a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation, for cash based on an enterprise value of USD 2.778 billion (subject to certain adjustments) and fleet of approximately 29,000 railcars.
The initial closing of the transaction is expected to occur in the second quarter of 2017. For a period of three years thereafter, upon satisfaction of certain conditions, the sellers will have an option to sell, and SMBC Rail will have an option to buy, approximately 4,800 additional railcars. If the conditions to the option are satisfied, the purchase price for the approximately 4,800 additional railcars would be approximately USD 586 million at the time of the initial closing, which would bring the total sale price to USD 3.364 billion (subject to certain adjustments).
Share on:
