(RTTNews) – CAI International, Inc. (CAI), a transportation finance company, said Monday it has agreed to sell all of its remaining railcar fleet to affiliates of Infinity Transportation for $228.7 million. The company expects closing of the transaction to occur on or before December 31, 2020.
Infinity Transportation, a subsidiary of Global Atlantic Financial Group, provides net and full-service leases as well as other structured financing solutions that address the logistical and financial needs of its clients.
“The sale of our remaining railcar fleet is an important milestone, as exiting the rail business allows us to execute our strategy of maximizing shareholder returns by focusing all of our resources on our core container leasing business. The sale will generate approximately $33 million in net cash proceeds after repayment of rail related debt and transaction costs,” said Timothy Page, Interim President and Chief Executive Officer of CAI International.
In conjunction with the sale, CAI International expects to incur an after-tax loss of about $17 million in discontinued operations, or $0.96 per share.
Looking ahead, CAI International said it expects net income from continuing operations to increase by more than 40 percent in the fourth quarter of 2020, and also expects conditions to remain favorable for increasing sequential quarterly earnings in early 2021.
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