<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 16, 1997
SECURITIES ACT FILE NO. 33-65293
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- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
AMENDMENT TO POST EFFECTIVE AMENDMENT NO. 1 TO
FORM S-3
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
------------------------
<TABLE>
<S> <C>
XTRA CORPORATION XTRA, INC.
(Exact Names of Registrants as Specified in Their Charters)
DELAWARE MAINE
(States or Other Jurisdictions of Incorporation or Organization)
06-0954158 01-0346274
(I.R.S. Employer Identification Nos.)
</TABLE>
THE ADDRESS AND TELEPHONE NUMBER FOR BOTH XTRA, INC. AND XTRA CORPORATION:
C/O X-L-CO., INC., 60 STATE STREET, BOSTON, MASSACHUSETTS 02109 (617) 367-5000.
(Address, including zip code and telephone number, including area code
of registrants' principal executive offices)
------------------------
JAMES R. LAJOIE, ESQ.
VICE PRESIDENT AND GENERAL COUNSEL
C/O X-L-CO., INC.
60 STATE STREET
BOSTON, MASSACHUSETTS 02109
(617) 367-5000
------------------------
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
COPIES TO:
<TABLE>
<S> <C>
DAVID A. FINE, ESQ. ROBERT W. REEDER, ESQ.
Ropes & Gray Sullivan & Cromwell
One International Place 125 Broad Street
Boston, MA 02110 New York, NY 10004
(617) 951-7000 (212) 558-4000
</TABLE>
------------------------
APPROXIMATE DATE OF COMMENCEMENT OF
PROPOSED SALE TO THE PUBLIC:
From time to time after the effectiveness of this Registration Statement.
------------------------
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. / /
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. /X/
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. / /
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. / /
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. / /
------------------------
The Registrants hereby amend this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrants
shall file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to Section 8(a), may
determine.
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<PAGE>
$604,000,000
XTRA CORPORATION
PREFERRED STOCK AND COMMON STOCK
XTRA, INC.
DEBT SECURITIES
GUARANTEED AS TO PAYMENT OF PRINCIPAL, PREMIUM, IF ANY,
AND INTEREST BY
XTRA CORPORATION
------------------
XTRA Corporation (the "Company" or the "Guarantor") may offer and sell from
time to time, together or separately, (i) shares of its Preferred Stock, no par
value (the "Preferred Stock"), in one or more series, and/or (ii) shares of its
Common Stock, par value $0.50 per share (the "Common Stock"), and XTRA, Inc., a
wholly-owned subsidiary of the Company, may offer and sell from time to time its
debt securities (the "Debt Securities"), which may be either senior debt
securities ("Senior Securities") or subordinated debt securities ("Subordinated
Securities"), consisting of unsecured debentures, notes and/or other evidences
of its indebtedness in one or more series at prices and on terms to be
determined at the time or times of sale. The Company will unconditionally
guarantee on a senior or subordinated basis, as the case may be, the payment of
principal of, premium, if any, and interest on the Debt Securities (the
"Guarantees"). The Debt Securities, Preferred Stock, Common Stock and Guarantees
are referred to herein collectively as the "Securities." The aggregate initial
offering price of the Securities will not exceed $604,000,000 (or its equivalent
(based on the applicable exchange rate at the time of sale) in one or more
foreign currencies, currency units or composite currencies as shall be
designated by the Company or XTRA, Inc., as the case may be).
For each offering of Securities for which this Prospectus is being
delivered, there will be an accompanying Prospectus Supplement (each a
"Prospectus Supplement") that sets forth (i) the specific designation, aggregate
principal amount, denominations, currency of payment, maturity, premium, if any,
interest rate, if any (which may be fixed or variable) or method of calculation
thereof, time of payment of any interest, terms for any redemption at the option
of XTRA, Inc. or the holder, terms for any sinking fund payments, subordination
provisions, if any, any listing on a national securities exchange, the form of
the Debt Securities (which may be in registered or permanent global form), the
initial public offering price and certain other terms of and in connection with
the offering and sale of the Debt Securities in respect of which this Prospectus
is being delivered; (ii) the terms of the Guarantees in respect of which this
Prospectus is being delivered; (iii) the specific series designation, number of
shares, the stated value and liquidation preference per share, initial public
offering price, dividend rate (or method of calculation), dates on which
dividends will be payable and dates from which dividends will accrue, optional
or mandatory redemption or sinking fund provisions, any conversion or exchange
rights, any listing of the Preferred Stock on a national securities exchange,
any voting rights and any other terms in connection with the offer and sale of
the Preferred Stock, if any, in respect of which this Prospectus is being
delivered; and (iv) the number of shares and initial public offering price of
the Common Stock in respect of which this Prospectus is being delivered. The
Prospectus Supplement will also contain information, as applicable, about
material United States Federal income tax considerations relating to the
Securities in respect of which this Prospectus is being delivered. See
"Description of Debt Securities of XTRA, Inc.," "Description of Preferred Stock
of XTRA Corporation" and "Description of Common Stock of XTRA Corporation."
The Senior Securities of XTRA, Inc. will rank equally with all other
unsubordinated and unsecured indebtedness of XTRA, Inc. The Subordinated
Securities will be subordinated to all existing and future Senior Indebtedness
(as defined) of XTRA, Inc. and the Guarantees of the Subordinated Securities
will be subordinated to all existing and future Senior Guarantor Indebtedness
(as defined) of the Company.
The Company's Common Stock is listed on the New York Stock Exchange under
the symbol "XTR." Any Common Stock offered will be listed, subject to notice of
issuance, on such exchange.
The Securities may be sold to or through underwriters, and also may be sold
directly by the Company or XTRA, Inc. to other purchasers or through agents. See
"Plan of Distribution." The names of and the principal amounts to be purchased
by any underwriters or sold through any agents and the compensation of such
underwriters or agents will be set forth in an accompanying Prospectus
Supplement.
------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
------------------------
The date of this Prospectus is May , 1997.
<PAGE>
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance
therewith files reports, proxy statements and other information with the
Securities and Exchange Commission (the "Commission"). Such reports, proxy
statements and other information filed by the Company can be inspected and
copied at the public reference facilities maintained by the Commission at 450
Fifth Street, N.W., Washington, D.C. 20549, and at the Commission's regional
offices at 7 World Trade Center, 13th Floor, New York, New York 10048, and
Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661,
and copies of such material can be obtained by mail from the Public Reference
Section of the Commission, 450 Fifth Street, N.W., Washington, D.C. 20549, at
prescribed rates, and at the Commission's web site at http:// www.sec.gov. In
addition, such material may also be inspected at the offices of the New York
Stock Exchange, Inc. (the "NYSE"), 20 Broad Street, New York, New York 10005,
upon which exchange the Company's Common Stock is listed.
XTRA, Inc. and the Company have filed with the Commission a joint
registration statement on Form S-3 (herein, together with all amendments and
exhibits, referred to as the "Registration Statement") under the Securities Act
of 1933, as amended (the "Securities Act"). This Prospectus does not contain all
of the information set forth in the Registration Statement, certain parts of
which are omitted in accordance with the rules and regulations of the
Commission. For further information reference is hereby made to the Registration
Statement.
------------------------
2
<PAGE>
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed with the Commission (File No. 1-7654) pursuant
to the Exchange Act are incorporated herein by reference:
1. The Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 1996;
2. The Company's Quarterly Report on Form 10-Q for the quarter ended
December 31, 1996;
3. The Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 1997;
4. The Company's Current Report on Form 8-K dated January 24, 1997;
5. The Company's Current Report on Form 8-K dated May 5, 1997;
6. The description of the Company's Common Stock contained in the
Company's Registration Statement on Form 10 dated July 1, 1964, including
any amendments or reports filed for the purpose of updating such
description; and
7. All other documents filed by the Company pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act subsequent to the date of this
Prospectus and prior to the termination of the offering of the Securities
offered hereby.
Any statement contained herein or in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Prospectus to the extent that a statement contained herein
or in any subsequently filed document that also is or is deemed to be
incorporated by reference herein modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Prospectus.
The Company will provide without charge to each person to whom this
Prospectus is delivered, upon the request of any such person, a copy of any or
all of the documents that are incorporated herein by reference other than the
exhibits to such documents (unless such exhibits are specifically incorporated
by reference into such documents). Requests for such copies should be directed
to the Company c/o its management subsidiary, X-L-CO., INC., at 60 State Street,
Boston, Massachusetts 02109, Attention: Investor Relations, telephone (617)
367-7810.
3
<PAGE>
THE COMPANY
The Company is engaged in freight transportation equipment leasing and
conducts its operations through its subsidiary, XTRA, Inc. The Company's leasing
equipment is offered in North America, predominantly in the United States, to
private fleet owners, contract and common carriers and railroads, and to
worldwide steamship lines to cover cyclical, seasonal or geographic shortages
and as a substitute for purchasing equipment. The Company's operating
subsidiaries lease, primarily on an operating basis, over-the-road trailers (as
well as older trailers for mobile storage use), intermodal trailers, chassis and
domestic containers and marine containers.
The Company was organized in 1957 as a Massachusetts corporation. In 1976 it
transferred substantially all of its operating assets to XTRA, Inc., a newly
organized Maine corporation, and the Company was re-organized as a holding
company under the laws of the State of Delaware. XTRA, Inc. conducts its
operations through its subsidiaries pursuant to fleet management agreements.
Under these management agreements, which are terminable upon 30 days notice by
either party, the operating subsidiaries pay fees to XTRA, Inc. for the use of
equipment owned by XTRA, Inc. Accordingly, XTRA, Inc.'s primary source of
revenues are payments under the fleet management agreements, leasing revenues
from transportation equipment leased directly by it, as well as dividends and
advances from its subsidiaries. At March 31, 1997, 20% of XTRA, Inc.'s
consolidated assets were accounted for by its subsidiaries. For fiscal 1996,
approximately 95% of XTRA, Inc.'s consolidated revenues were accounted for by
its subsidiaries.
The Company's management subsidiary, X-L-CO., INC., is located at 60 State
Street, Boston, Massachusetts 02109, and its telephone number is (617) 367-5000.
USE OF PROCEEDS
Except as otherwise described in the applicable Prospectus Supplement, the
Company intends to use the net proceeds from the sale of the Securities being
offered hereby for general corporate purposes. Such purposes may include, among
others, financing capital expenditures, repayment of outstanding short-term
borrowings and long-term debt, repurchasing shares of its Common Stock through
open-market purchases or otherwise and financing acquisitions in transportation
equipment or other equipment leasing product lines. Pending such use, the net
proceeds of any offering of the Securities offered hereby may be invested
temporarily in short-term marketable securities.
CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES AND
CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
The following tables set forth the historical ratios of earnings to fixed
charges of the Company and its consolidated subsidiaries, and of XTRA, Inc. and
its consolidated subsidiaries and the historical ratio of earnings to combined
fixed charges and preferred stock dividends of the Company and its consolidated
subsidiaries for the years indicated. For purposes of computing the consolidated
ratios of earnings to fixed charges and consolidated ratio of earnings to
combined fixed charges and preferred stock dividends, "earnings" represent
income (loss) from continuing operations before taxes and extraordinary items
plus fixed charges. "Fixed charges" for continuing operations consist of
interest on indebtedness (including capitalized interest) and the portion of
rental expense that represents interest.
4
<PAGE>
XTRA CORPORATION
<TABLE>
<CAPTION>
FISCAL YEAR ENDED
SEPTEMBER 30,
---------------------------------
1992 1993 1994 1995 1996
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Ratio of Earnings to Fixed Charges........ 2.7X 2.6X 3.7X 3.3X 2.0X
Ratio of Earnings to Combined Fixed
Charges and Preferred Stock Dividends... 2.1X 2.2X --* --* --*
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 1997
-------------------------
<S> <C>
Ratio of Earnings to Fixed Charges........ 2.1X
Ratio of Earnings to Combined Fixed
Charges and Preferred Stock Dividends... --*
</TABLE>
- ------------------------
* No shares of the Company's Preferred Stock are currently outstanding or were
outstanding during the indicated period.
XTRA, INC.
<TABLE>
<CAPTION>
FISCAL YEAR ENDED
SEPTEMBER 30,
---------------------------------
1992 1993 1994 1995 1996
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Ratio of Earnings to Fixed Charges........ 2.7X 2.6X 3.7X 3.3X 2.0X
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 1997
-------------------------
<S> <C>
Ratio of Earnings to Fixed Charges........ 2.1X
</TABLE>
DESCRIPTION OF DEBT SECURITIES OF XTRA, INC.
The following description sets forth certain general terms and provisions of
the Debt Securities of XTRA, Inc. to which any Prospectus Supplement may relate.
The particular terms of the Debt Securities offered by any Prospectus Supplement
and the extent, if any, to which such general provisions may apply to the Debt
Securities so offered will be described in the Prospectus Supplement relating to
such Debt Securities.
The Debt Securities constitute either Senior Securities or Subordinated
Securities. The Senior Securities and related Guarantees are to be issued under
an Indenture dated as of August 15, 1994 (the "Original Senior Indenture"),
among XTRA, Inc., the Company, as Guarantor, and The First National Bank of
Boston, as Trustee (the "Bank of Boston"), as supplemented by the First
Supplemental Indenture dated as of September 30, 1994 among XTRA, Inc., the
Company, as Guarantor, XTRA Missouri, Inc., as Guarantor, and the Bank of Boston
(the "First Supplemental Indenture") and as supplemented by The Second
Supplemental Indenture among XTRA, Inc., the Company and State Street Bank and
Trust Company, as Trustee (the "Second Supplemental Indenture", and, together
with the First Supplemental Indenture and the Original Senior Indenture, the
"Senior Indenture"), which Senior Indenture is incorporated by reference as an
exhibit to this Registration Statement. On October 2, 1995, State Street Bank
and Trust Company succeeded to all or substantially all of the corporate trust
business of the Bank of Boston, thereby becoming the successor Trustee pursuant
to the terms of the Senior Indenture (hereinafter the "Senior Trustee").
Effective September 30, 1996, XTRA Missouri, Inc., an intermediary holding
company of which XTRA, Inc. was a wholly-owned subsidiary and which, in turn,
was a wholly-owned subsidiary of the Company, was merged with and into the
Company, thereby transferring all of its assets and liabilities to the Company.
The Subordinated Securities and related Guarantees will be issued under an
Indenture (the "Subordinated Indenture") to be entered into among XTRA, Inc.,
the Company, as Guarantor and a trustee to be designated prior to the issuance
of any such Subordinated Securities, the form of which Subordinated Indenture is
also filed as an exhibit to the Registration Statement. Information regarding
the trustee (the "Subordinated Trustee") under the Subordinated Indenture will
be included in any Prospectus Supplement relating to such Subordinated
Securities. The Senior Indenture and the Subordinated Indenture are sometimes
collectively referred to herein as the "Indentures;" the Senior Trustee and the
Subordinated Trustee are sometimes collectively
5
<PAGE>
referred to herein as the "Trustees" and individually as a "Trustee." The
following summary of certain provisions of the Indentures does not purport to be
complete and is subject to, and qualified in its entirety by reference to, all
the provisions of the Indentures, including the definitions therein of certain
terms. Wherever particular provisions of defined terms of the Indentures are
referred to, such provisions or defined terms are incorporated herein by
reference. Certain defined terms in the Indentures are capitalized herein.
References in parentheses are to the Indentures.
GENERAL
The Indentures provide that unsecured Debt Securities of XTRA, Inc., not
limited in aggregate principal amount, may be issued in one or more series
thereunder. (Section 3.1) As of March 31, 1997, XTRA, Inc. had a total of
$550,500,000 principal amount of Debt Securities outstanding under the Senior
Indenture, consisting solely of its Series C Medium-Term Notes. The Senior
Securities will be unsecured obligations of XTRA, Inc. and will rank on a parity
with all other unsecured and unsubordinated indebtedness of XTRA, Inc. Unless
otherwise indicated in the applicable Prospectus Supplement, the Subordinated
Securities will be unsecured and subordinated in right of payment to all
existing and future Senior Indebtedness of XTRA, Inc., in the manner and to the
extent described below under "Subordination of Subordinated Securities." XTRA,
Inc.'s sources of payment of the Debt Securities are payments under fleet
management agreements with certain of its subsidiaries, leasing revenues from
transportation equipment leased directly by it and advances and dividends from
its subsidiaries. In any liquidation, foreclosure or other similar proceeding,
creditors of the subsidiaries of XTRA, Inc. will be entitled to payment of
obligations owed to them before any assets are distributed to XTRA, Inc. See
"The Company."
The Debt Securities will be unconditionally guaranteed by the Guarantor as
to payment of principal, premium, if any, and interest, except that the
Subordinated Securities will be guaranteed on a subordinated basis. (Section
2.2) See "Guarantees."
Reference is made to the Prospectus Supplement relating to the particular
series of Debt Securities offered thereby for the following terms thereof, among
others: (1) the title of such Debt Securities; (2) any limit upon the aggregate
principal amount of such Debt Securities; (3) the person to whom any interest on
such Debt Securities shall be payable if other than the registered holder; (4)
the date or dates on which such Debt Securities will mature; (5) the rate or
rates at which such Debt Securities shall bear interest, if any, or the method
by which such rate or rates shall be determined; (6) the date or dates from
which any such interest shall accrue, and the Interest Payment Dates on which
payment of any such interest will be payable and the Regular Record Dates for
such Interest Payment Dates (or method for establishing any such date or dates);
(7) the place or places where the principal of, premium, if any, and any
interest on such Debt Securities shall be payable; (8) the period or periods
within which, the price or prices at which, and the terms and conditions upon
which such Debt Securities may be redeemed, in whole or in part, at the option
of XTRA, Inc.; (9) the obligation, if any, of XTRA, Inc. to redeem, repay or
purchase such Debt Securities pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within
which, the price or prices at which, and the terms and conditions upon which
such Debt Securities shall be redeemed, repaid or purchased, in whole or in
part, pursuant to such obligation; (10) the denominations in which any debt
securities will be issuable, if other than denominations of $1,000 and any
integral multiple thereof; (11) if other than U.S. dollars, the currency,
currencies or currency unit or units in which principal of, premium, if any, and
interest on such Debt Securities shall be payable and the manner of determining
the equivalent thereof in the currency of the United States for any purpose;
(12) if the principal of or any premium or interest on such Debt Securities is
to be payable, at the election of XTRA, Inc. or a Holder thereof, in one or more
currencies or currency units other than that or those in which such Debt
Securities are stated to be payable, the currency, currencies or currency units
in which payment of the principal of and any premium and interest on Debt
Securities of such series as to which such election is made shall be payable,
and the period or
6
<PAGE>
periods within which and the terms and conditions upon which such election is to
be made; (13) the index or formulas, if any, with reference to which the amount
of any payment of principal of, premium, if any, or interest on the Debt
Securities will be determined; (14) the portion of the principal amount of such
Debt Securities which will be payable upon declaration of acceleration of the
Maturity thereof, if other than the stated principal amount thereof; (15) if the
principal amount payable at the Stated Maturity of any of the Debt Securities
will not be determinable as of any one or more dates prior to the Stated
Maturity, the amount which will be deemed to be such principal amount as of any
such date for any purpose, including the principal amount thereof which will be
due and payable upon any Maturity other than the Stated Maturity or which will
be deemed to be Outstanding as of any such date (or, in any such case, the
manner in which such deemed principal amount is to be determined); (16) the
applicability of any provisions described under "Certain Covenants of XTRA, Inc.
and the Guarantor" and any additional restrictive covenants included for the
benefit of Holders of such Debt Securities; (17) any additional Events of
Default with respect to such Debt Securities; (18) whether such Debt Securities
shall be issued, in whole or in part, in permanent global form (each a "Global
Security") and, in such case, the Depositary for such Global Security or
Securities; (19) in the case of an issue of Subordinated Securities, the
subordination provisions, if different from those described under "Subordination
of Subordinated Securities" and "Guarantees" below; (20) the applicability of
any provisions described below under "-- Defeasance and Discharge;" and (21) any
other terms of such Debt Securities not inconsistent with the provisions of the
Indentures. (Sections 3.1 and 9.1)
Principal, premium, if any, and interest will be payable, and such Debt
Securities will be transferable, in the manner described in the Prospectus
Supplement relating to such Debt Securities. The maturities and interest rates
of certain Debt Securities sold through underwriters or agents may be fixed by
XTRA, Inc. from time to time, in which case no specific maturities or rates, but
rather permissible ranges of such maturities and rates will be set forth in the
Prospectus Supplement relating thereto.
Unless otherwise indicated in the Prospectus Supplement relating thereto,
the Debt Securities will be exchangeable and transfers thereof will be
registrable at the offices or agencies of XTRA, Inc. maintained for such
purpose, initially in the case of the Senior Securities at the Corporate Trust
Office of the Senior Trustee in Boston, Massachusetts. In New York City, Senior
Securities may be presented for transfer or exchange at the office of the Senior
Trustee located at 61 Broad Street, Concourse Level, Corporate Trust Window, New
York, New York 10006. Principal of and premium, if any, and interest on the
Senior Securities will be payable at the office or agency in Boston,
Massachusetts of State Street Bank and Trust Company, as Paying Agent, provided
that, at the option of XTRA, Inc., payment of interest may be made by check
mailed to the address of the Person entitled thereto as it appears in the
Security Register. (Sections 3.1, 3.5 and 10.2) The offices or agencies of XTRA,
Inc. at which exchanges and transfers of Subordinated Securities will be
registrable and the office or agency of any Paying Agent with respect to the
Subordinated Securities will be identified in the Prospectus Supplement relating
thereto.
Unless otherwise indicated in the Prospectus Supplement relating thereto,
the Debt Securities will be issued only in registered form, without coupons, in
denominations of $1,000 or any integral multiple thereof. (Section 3.2) No
service charge will be made for any transfer or exchange of the Debt Securities,
but XTRA, Inc. may require payment of a sum sufficient to cover any tax or other
governmental charge in connection therewith. (Section 3.5) The Indentures also
provide that the Debt Securities of any series, if so specified with respect to
a particular series, may be issued in permanent global form. See "Global
Securities."
Debt Securities may be issued at a discount from their stated principal
amount. United States Federal income tax considerations and other special
considerations applicable to any such Original Issue Discount Securities will be
described in the applicable Prospectus Supplement. "Original Issue Discount
Security" means any security which provides for an amount less than the stated
principal amount thereof to be due and payable upon the declaration of
acceleration of the maturity thereof upon the occurrence and continuance of an
Event of Default. (Section 1.1)
7
<PAGE>
If the purchase price of any of the Debt Securities is denominated in a
foreign currency or currencies or a foreign currency unit or units or if the
principal of and any premium and interest on any series of Debt Securities is
payable in a foreign currency or currencies or a foreign currency unit or units,
the restrictions, elections, general tax considerations, specific terms and
other information with respect to such issue of Debt Securities and such foreign
currency or currencies or foreign currency unit or units will be set forth in
the applicable Prospectus Supplement. If any index is used to determine the
amount of payments of principal of, premium, if any, or interest on any series
of Debt Securities, special Federal income tax, accounting and other
considerations applicable thereto will be described in the applicable Prospectus
Supplement.
Other than as set forth under "Certain Covenants of XTRA, Inc. and the
Guarantor," and only to the extent applicable to the Debt Securities of a
particular series, as indicated in the applicable Prospectus Supplement, there
are no provisions of the Indentures that afford Holders of the Debt Securities
protection in the event of a highly leveraged transaction involving XTRA, Inc.
or the Guarantor.
SUBORDINATION OF SUBORDINATED SECURITIES
The indebtedness evidenced by the Subordinated Securities will be
subordinated and junior in right of payment to the extent set forth in the
Subordinated Indenture to the prior payment in full of amounts then due on all
Senior Indebtedness (as defined below). No payment shall be made on the
Subordinated Securities, including by way of redemption, purchase, or in any
other manner, if the Subordinated Trustee shall have received notice from XTRA,
Inc., the Guarantor or any Senior Lender (as defined below), that (i) there
exists a default which shall be continuing in the payment of principal of, or
premium, if any, or interest on any Senior Indebtedness, beyond any applicable
grace period with respect thereto, or (ii) there exists a default (other than a
default specified in clause (i) above) with respect to any Senior Indebtedness
which shall be continuing; provided, however, that no notice given with respect
to one or more defaults of the type specified in clause (ii) shall suspend for
longer than 180 days from the date of such notice any payment on Subordinated
Securities that has become due, and only one such notice may be given during any
360-day period.
Upon any distribution of assets of XTRA, Inc. upon any liquidation,
dissolution or other winding-up of XTRA, Inc., whether voluntary or involuntary,
or in bankruptcy or insolvency, all principal of, premium, if any, and interest
due upon all Senior Indebtedness must be paid in full before the Holders of the
Subordinated Securities or the Subordinated Trustee are entitled to receive or
retain any assets so distributed in respect of the Subordinated Securities. By
reason of this provision, in the event of insolvency, Holders of the
Subordinated Securities may recover less, ratably, than other creditors of XTRA,
Inc., including holders of Senior Indebtedness.
Subject to payment in full of all Senior Indebtedness of XTRA, Inc., the
rights of Holders of the Subordinated Securities will be subrogated to the
rights of holders of Senior Indebtedness to receive payments or distributions of
cash, property or securities of XTRA, Inc. applicable to Senior Indebtedness.
"Senior Indebtedness" means the principal of, premium, if any, and interest
on (a) all indebtedness of XTRA, Inc. (including indebtedness of others
guaranteed by XTRA, Inc.), other than the Subordinated Securities, which is (i)
for money borrowed or (ii) evidenced by a note or similar instrument given in
connection with the acquisition of any business, properties or assets of any
kind or in connection with the obtaining of financing, and (b) amendments,
renewals, extensions, modifications and refundings of any such indebtedness or
obligation, in any such case whether outstanding on the date of the Subordinated
Indenture or thereafter created, incurred or assumed, unless in any case in the
instrument creating or evidencing any such indebtedness or obligation or
pursuant to which the same is outstanding it is provided that such indebtedness
or obligation is not superior in right of payment to the Subordinated Securities
or it is provided that such indebtedness or obligation is subordinated to Senior
Indebtedness
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to substantially the same extent as the Subordinated Securities are subordinated
to Senior Indebtedness. The term "Senior Lender" shall mean any holder of Senior
Indebtedness or Senior Guarantor Indebtedness (as defined below under
"Guarantees").
The Subordinated Indenture places no limitation on the amount of additional
Senior Indebtedness or Senior Guarantor Indebtedness that may be incurred by
XTRA, Inc. or the Company, respectively. XTRA, Inc. and the Company expect from
time to time to incur additional indebtedness constituting Senior Indebtedness
and Senior Guarantor Indebtedness. As of March 31, 1997, the amount of Senior
Indebtedness was approximately $844,000,000 and the amount of Senior Guarantor
Indebtedness was approximately $844,000,000.
GUARANTEES
The Company will unconditionally guarantee the due and punctual payment of
principal of, premium, if any, and interest on the Debt Securities, when and as
the same shall become due and payable, whether at the maturity date, by
declaration of acceleration, call for redemption or otherwise, except that
payments under the Guarantees of the Subordinated Securities will be
subordinated to Senior Guarantor Indebtedness to the extent described below. The
term "Senior Guarantor Indebtedness" means all obligations of the Company under
guarantees of Senior Indebtedness of XTRA, Inc. No payment will be made by the
Guarantor under the Guarantees in respect of the Subordinated Securities during
any period that payments by XTRA, Inc. on the Subordinated Securities are
suspended by the subordination provisions of the Subordinated Indenture as
described above under "Subordination of Subordinated Securities." The Guarantees
will remain in effect until the entire principal of, premium, if any, and
interest on the Debt Securities shall have been paid in full or otherwise
discharged in accordance with the provisions of the Indentures. (Section 2.2)
Upon any distribution of assets of the Company upon any liquidation,
dissolution or other winding up of the Company, whether voluntary or
involuntary, or in bankruptcy or insolvency, all amounts due in respect of all
Senior Guarantor Indebtedness must be paid in full before the Holders of the
Guarantees of the Subordinated Securities, or the Subordinated Trustee, are
entitled to receive or retain any assets so distributed in respect of the
Guarantees of the Subordinated Securities. By reason of this provision, in the
event of insolvency, Holders of the Subordinated Securities and the related
Guarantees may recover less, ratably, than other creditors of the Company,
including holders of Senior Guarantor Indebtedness.
Subject to payment in full of all Senior Guarantor Indebtedness, the rights
of the Holders of the Subordinated Securities under the related Guarantees will
be subrogated to the rights of Holders of Senior Guarantor Indebtedness to
receive payments or distributions of cash, property or securities of the Company
applicable to Senior Guarantor Indebtedness.
The Company's sources of funds for payment of its obligations, including its
obligations under the Guarantees of the Debt Securities, are advances and
dividends from its subsidiary, XTRA, Inc. See "Description of Common Stock of
XTRA Corporation--Holding Company Status."
GLOBAL SECURITIES
Some or all of the Debt Securities of any series may be represented, in
whole or in part, by one or more Global Securities which will have an aggregate
principal amount equal to that of the Debt Securities represented thereby. Each
Global Security will be registered in the name of a Depositary or a nominee
thereof identified in the applicable Prospectus Supplement, will be deposited
with such Depositary or nominee or a custodian therefor and will bear a legend
regarding the restrictions on exchanges and registration of transfer thereof
referred to below and any such other matters as may be provided for pursuant to
the Indenture.
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No Global Security may be exchanged in whole or in part for Debt Securities
registered, and no transfer of a Global Security in whole or in part may be
registered, in the names of Persons other than the Depositary for such Global
Security or its nominee unless (i) such Depositary notifies XTRA, Inc. that it
is unwilling or unable to continue as Depositary for such Global Security or if
at any time such Depositary ceases to be a clearing agency registered under the
Exchange Act, (ii) there shall have occurred and be continuing an Event of
Default with respect to the Debt Securities, (iii) XTRA, Inc. executes and
delivers to the Trustee an order to the effect that the Global Securities shall
be transferable and exchangeable, or (iv) there shall exist such circumstances
in addition to, or in lieu of, the foregoing as may be described in the
applicable Prospectus Supplement. (Sections 3.1 and 3.5) Principal of, premium,
if any, and interest on a Global Security will be payable in the manner
described in the Prospectus Supplement relating thereto. The specific terms of
the depositary arrangements with respect to any portion of a series of Debt
Securities to be represented by a Global Security will be described in the
applicable Prospectus Supplement.
CERTAIN COVENANTS OF XTRA, INC. AND THE GUARANTOR
LIMITATION ON LIENS OF THE COMPANY
The Company will not create or permit to exist any mortgage, pledge, deed of
trust or security interest on any of the capital stock, or Indebtedness
convertible into capital stock, of any of its Subsidiaries. (Section 10.7)
LIMITATION ON LIENS OF XTRA, INC.
XTRA, Inc. will not create or permit to exist any mortgage, pledge, deed of
trust, financing lease or security interest ("Liens") on any of its property
whether now owned or hereafter acquired other than:
(i) Liens on Transportation Equipment securing Acquired Equipment
Indebtedness;
(ii) Liens on Transportation Equipment securing Purchase Money Equipment
Indebtedness, but only on the Transportation Equipment in respect to the
purchase of which such Purchase Money Equipment Indebtedness shall have been
incurred;
(iii) Liens on real property;
(iv) Liens incurred or deposits made in the ordinary course of business
(1) in connection with workers' compensation, unemployment insurance, social
security and other like laws, or (2) to secure the performance of letters of
credit, bids, tenders, sales contracts, leases, statutory obligations,
surety, appeal and performance bonds and other similar obligations not
incurred in connection with Indebtedness or (3) in connection with the
opening of commercial letters of credit naming XTRA, Inc. as an account
party;
(v) Liens on Transportation Equipment securing Lease Obligations;
provided, however, that no such Lease Obligations shall arise out of the
Sale and Leaseback of Transportation Equipment unless the Sale and Leaseback
in question is entered into prior to, at the time of or within 180 days of
the acquisition of the Transportation Equipment being sold and leased back;
and provided, further, that the leasing of Transportation Equipment which
has been remanufactured so that it is the substantial equivalent of new
equipment shall be considered the leasing of new equipment and not of the
used equipment which was remanufactured and subsequently sold and leased
back; and
(vi) Liens to secure Indebtedness and other obligations (excluding
Subordinated Indebtedness) which are not referred to as permitted Liens in
paragraphs (i), (ii), (iii), (iv) and (v) above; provided, however, that the
aggregate principal amount of Indebtedness and other obligations secured
thereby at any one time outstanding shall not exceed 10% of the Consolidated
Net Worth of XTRA, Inc.
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unless prior to or simultaneously with the inception of any such Lien which is
not referred to as a permitted Lien in paragraph (i), (ii), (iii), (iv), (v) or
(vi) above, XTRA, Inc. shall have executed and delivered to a Security Trustee
(as hereinafter defined) a security agreement or security agreements and such
other documents as the Security Trustee may reasonably request, each in form and
substance satisfactory to the applicable Trustee, granting to the Security
Trustee a security interest in such property
subject to such Lien, such security interest to be for the equal and ratable
benefit of the Holders and such other holder or holders of Indebtedness with
which XTRA, Inc. has agreed to permit such holders to share in such Lien. Such
security agreement or security agreements may provide, at the option of XTRA,
Inc., that the security interest granted to the Security Trustee thereby shall
terminate upon the termination of all other Liens for the benefit of such other
holder or holders of Indebtedness. The Security Trustee shall be such Person as
may be selected by XTRA, Inc. or any holder of Indebtedness to whom XTRA, Inc.
has specifically granted the right to select such Security Trustee and who shall
be entitled to act without qualification or who, if required, shall qualify to
act as such under the Trust Indenture Act of 1939. (Section 10.8)
CERTAIN DEFINITIONS USED IN THE INDENTURES
"Acquired Equipment Indebtedness" of a Person is defined to mean all
Indebtedness (including all Lease Obligations) of the Person in question if such
Indebtedness (a) is Secured Equipment Indebtedness and (b) was incurred by
another Person prior to the time the Person in question acquired the
Transportation Equipment or Transportation Equipment leases securing such
Secured Equipment Indebtedness from such other Person or prior to the time the
Person in question acquired such other Person and shall include all extensions,
renewals and refinancings of such Indebtedness not in excess of the principal
amount thereof outstanding immediately prior to such extension, renewal or
refinancing.
"Consolidated Net Worth" of a Person is defined to mean, at any date as of
which the amount thereof shall be determined, the sum of the following amounts
which would be set forth on a Consolidated balance sheet of the Person in
question and its Subsidiaries at such date, determined in each case on a
Consolidated basis in accordance with generally accepted accounting principles:
(a) the par value (or values stated on the books of such Person) of the capital
stock of all classes of such Person other than capital stock held in the
treasury of such Person, plus (b) the amount of the Consolidated surplus,
whether capital or earned, of such Person and its Subsidiaries, plus (c)
Subordinated Indebtedness of such Person, plus (d) 50% of the deferred income
tax liability of such Person and its Subsidiaries, less (e) the amount which
would be carried in the asset side of such balance sheet of such Person and its
Subsidiaries in respect of goodwill, trade names, trademarks, patents,
unamortized debt issuance expenses and other intangibles, less (f) any increase
in the value of a fixed asset arising from a revaluation thereof after September
30, 1994.
"Indebtedness" is defined to mean (a) the principal of all indebtedness (i)
for borrowed money or (ii) for the deferred purchase price of property unless
the price thereof was payable in full within 12 months from the date on which
the obligation was created or (iii) evidenced by notes, bonds or other
instruments, (b) all Lease Obligations and (c) all guarantees and other
contingent obligations in respect of the principal of Indebtedness of others;
provided, however, that Indebtedness shall not include Subordinated
Indebtedness.
"Lease Obligation" of a Person is defined to mean all rental obligations
under leases of property (other than electronic data processing and computer
equipment and leases of office space by such Person or its Subsidiaries) either
(a) which are Capitalized Leases, or (b) if not Capitalized Leases, which are
leases of equipment which had an initial term of more than three years
(including any renewal terms at the option of the lessor). The amount of Lease
Obligations shall be equal to the aggregate value of rentals payable (other than
rentals consisting of taxes, indemnities, maintenance items, replacements and
other similar charges which are in addition to the basic financial rent for the
use of the property) by the lessee thereof during the remaining term thereof,
including periods of renewal at the option of the
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lessor, discounted to present value using the lessee's "incremental borrowing
rate at the inception of the lease" in accordance with Financial Accounting
Standard No. 13 of the Financial Accounting Standards Board from time to time in
effect.
"Purchase Money Equipment Indebtedness" of a Person is defined to mean all
Indebtedness (excluding all Lease Obligations) of such Person which is Secured
Equipment Indebtedness incurred to finance the purchase of Transportation
Equipment if such Indebtedness (a) shall have been incurred within 180 days of
the acquisition of such Transportation Equipment by the Person whose Purchase
Money Equipment Indebtedness is being determined and (b) does not exceed in
principal amount the initial cost of such Transportation Equipment and shall
include all extensions, renewals and refinancings of such Indebtedness not in
excess of the principal amount thereof outstanding immediately prior to such
extension, renewal or refinancing. The initial cost of Transportation Equipment
may include, in addition to the purchase price thereof and the purchase price of
all accessories and equipment installed thereon, all freight, delivery and
handling charges, excise, sales and use taxes and all other amounts which may be
capitalized and included in the cost of the equipment under generally accepted
accounting principles.
"Sale and Leaseback", with respect to a Person, means any transaction with a
bank, company, lender or investor providing for the leasing by such Person of
any property which has been or is to be sold or transferred by such Person to
such bank, company, lender or investor, or to any Person to whom funds have been
or are to be advanced by such bank, company, lender or investor on the security
of such property. (Section 10.7)
"Secured Equipment Indebtedness" is defined to mean with respect to a Person
all Indebtedness which is secured by any security interest, mortgage, charge,
pledge, deed of trust, or other similar lien on Transportation Equipment or on
leases of any such Transportation Equipment by the owner thereof and includes
all Lease Obligations. Transportation Equipment which is subject to a lease or
contract which is included as a Lease Obligation is deemed to secure the
Indebtedness evidenced thereby.
"Subordinated Indebtedness" is defined to mean Indebtedness of the Company
or XTRA, Inc. which is expressly subordinated and subject in right of payment to
the prior payment, in bankruptcy or in the event of a payment default on the
Debt Securities or the Guarantees, in full in money or money's worth in
accordance with their terms, of all principal of, premium, if any, and interest
on the Debt Securities or the Guarantees, as applicable. The Subordinated
Securities will constitute Subordinated Indebtedness.
"Subsidiary" of the Company or XTRA, Inc. is defined to mean a corporation
more than 50% of the Voting Stock of which is owned, directly or indirectly, by
the Company or XTRA, Inc. and/or one or more Subsidiaries of the Company or
XTRA, Inc.
"Transportation Equipment" is defined to mean domestic and marine
containers, trucks, tractors, trailers, chassis, cranes, portable ramps, lifting
equipment, railroad locomotives, railroad rolling stock, modular office units,
mobile office and storage trailers and all other transportation equipment, and
includes all accessories and attachments thereto. (Section 1.1)
EVENTS OF DEFAULT
The following are Events of Default under the Indentures with respect to
Debt Securities of any series: (a) failure to pay any interest on any Debt
Security of that series when due, continued for 30 days, in the case of the
Subordinated Securities, whether or not such payment is prohibited by the
subordination provisions of the Subordinated Indenture; (b) failure to pay
principal of any Debt Security of that series when due, in the case of the
Subordinated Securities, whether or not such payment is prohibited by the
subordination provisions of the Subordinated Indenture; (c) default in the
deposit of any sinking
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fund payment, when due by the terms of the Debt Securities of that series, in
the case of the Subordinated Securities, whether or not such payment is
prohibited by the subordination provisions of the Subordinated Indenture; (d)
failure to perform any other covenant or breach of a warranty of XTRA, Inc. or
the Company in the applicable Indenture (other than a covenant expressly
included in such Indenture solely for the benefit of a series of Debt Securities
other than that series), continued for 60 days after written notice as provided
in the respective Indentures; (e) default by the Company or XTRA, Inc. with
respect to payment of other Indebtedness at its stated maturity or such as would
permit the holder thereof to accelerate the stated maturity of such
Indebtedness, in each case, in a principal amount of $10,000,000 or more if such
Indebtedness is not discharged or such acceleration is not rescinded or annulled
within 10 days after written notice as provided in the Indentures; (f) certain
events in bankruptcy, insolvency or reorganization of the Company or XTRA, Inc.;
and (g) any other Event of Default provided with respect to Debt Securities of
that series. (Section 5.1) If an Event of Default with respect to Debt
Securities of any series at the time outstanding shall occur and be continuing,
either the applicable Trustee or the Holders of at least 25% in principal amount
of the Debt Securities of that series may declare the principal amount of all
Debt Securities of that series (or if any Debt Securities of such series are
Original Issue Discount Securities, such portion of the principal amount of such
Debt Securities as may be specified by the terms thereof) to be due and payable
immediately. However, at any time after a declaration of acceleration with
respect to Debt Securities of any series has been made, but before a judgment or
decree based on such acceleration has been obtained, the Holders of a majority
in principal amount of the Debt Securities of that series may, under certain
circumstances, rescind and annul such acceleration. (Section 5.2) For
information as to waiver of default, see "Modification and Waiver."
The Indentures provide that, subject to the duty of the respective Trustees
thereunder during default to act with the required standard of care, such
Trustee will be under no obligation to exercise any of its rights or powers
under the respective Indentures at the request or direction of any of the
Holders of the Debt Securities unless they shall have offered to such Trustee
reasonable indemnity. (Section 6.3) Subject to such provisions for
indemnification of the Trustees, the Holders of a majority in principal amount
of the Debt Securities of any series affected will have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the applicable Trustee, or exercising any trust or power conferred on such
Trustee, with respect to the Debt Securities of such series. (Section 5.12)
No Holder of a Debt Security of any series will have any right to institute
any proceeding with respect to the applicable Indenture, or for the appointment
of a receiver or a trustee, or for any other remedy thereunder, unless (i) such
Holder has previously given to the applicable Trustee written notice of a
continuing Event of Default with respect to the Debt Securities of that series,
(ii) the Holders of at least 25% in aggregate principal amount of the
Outstanding Debt Securities of that series have made written request, and such
Holder or Holders have offered reasonable indemnity, to such Trustee to
institute such proceeding as trustee, and (iii) such Trustee has failed to
institute such proceeding, and has not received from the Holders of a majority
in aggregate principal amount of the Outstanding Debt Securities of that series
a direction inconsistent with such request, within 60 days after such notice,
request and offer. (Section 5.7) However, such limitations do not apply to a
suit instituted by a Holder of a Debt Security for the enforcement of payment of
the principal of or any premium or interest on such Debt Security on or after
the applicable due date specified in such Debt Security. (Section 5.8)
The Guarantor and XTRA, Inc. will each be required to furnish to the
Trustees annually a statement as to whether there is a default in the
performance or observance of certain covenants. (Section 10.9)
DEFEASANCE AND DISCHARGE
If so indicated in the applicable Prospectus Supplement with respect to the
Debt Securities of a series, the Guarantor and XTRA, Inc., at their option, (i)
will be discharged from any and all obligations in respect of the Debt
Securities (and Guarantees) of such series (except for certain obligations to
register
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the transfer or exchange of Debt Securities of such series, to replace stolen,
lost or mutilated Debt Securities of such series, to maintain paying agencies
and to hold monies for payment in trust), or (ii) will be released from their
obligations to comply with the covenants that are specified under "Certain
Covenants of XTRA, Inc. and the Guarantor" above and other covenants and
obligations specified in Section 13.3 of the applicable Indenture with respect
to the Debt Securities of such series, and the occurrence of an event described
in clause (d) under "Events of Default" above with respect to any defeased
covenant and clauses (e) and (g) of the "Events of Default" above shall no
longer be an Event of Default if, in either case, the Company and/or XTRA, Inc.
deposits with the applicable Trustee, in trust, money and/or U.S. Government
Obligations that, through the payment of interest and principal in respect
thereof in accordance with their terms will provide money in an amount
sufficient to pay the principal of and each instalment of interest on the Debt
Securities of such series, on the stated maturity of such payments in accordance
with the terms of the applicable Indenture and the Debt Securities of such
series. Money and/or U.S. Government Obligations so held in trust will not be
subject to the subordination provisions described under "Subordination of
Subordinated Securities." (Sections 13.2 and 13.3) Such a trust may be
established only if, among other things, (i) no Event of Default or event which
with the giving of notice of lapse of time, or both, would become an Event of
Default under the applicable Indenture shall have occurred and be continuing on
the date of such deposit, (ii) no Event of Default described under clause (f)
under "Events of Default" above or event which with the giving of notice or
lapse of time, or both, would become an Event of Default described under such
clause (f) shall have occurred and be continuing at any time during the period
ending on or prior to the 90th day following such date of deposit, and (iii)
XTRA, Inc. delivers to the applicable Trustee an opinion of counsel to the
effect that the Holders of the Debt Securities of such series will not recognize
gain or loss for federal income tax purposes as a result of such deposit,
defeasance and discharge and will be subject to federal income tax on the same
amount and in the same manner and at the same times, as would have been the case
if such deposit, defeasance and discharge had not occurred. (Section 13.4)
In the event the Guarantor and XTRA, Inc. exercise their options to omit
compliance with certain covenants and Events of Default of the applicable
Indenture with respect to the Debt Securities of a series as described under
clause (ii) above and the Debt Securities of such series are declared due and
payable because of the occurrence of any undefeased Event of Default, the amount
of money and U.S. Government Obligations on deposit with the applicable Trustee
may not be sufficient to pay amounts due on the Debt Securities of such series
at the time of the acceleration resulting from such Event of Default. In such a
case, XTRA, Inc. and the Guarantor would remain liable for such payments.
MODIFICATION AND WAIVER
Modifications and amendments of the respective Indentures may be made by the
Guarantor, XTRA, Inc. and the Trustee with the consent of the Holders of a
majority in principal amount of the Outstanding Debt Securities of each series
which are affected thereby and 66 2/3% in aggregate principal amount of the
Outstanding Debt Securities of all series affected thereby; provided, however,
that no such modification or amendment may, without the consent of each Holder
of such Debt Security affected thereby: (a) change the stated maturity of the
principal of, or any instalment of principal of or interest on, any such Debt
Security; (b) reduce the principal amount of or interest on any such Debt
Securities; (c) change the place or currency of payment of principal of or
interest on any such Debt Security; (d) impair the right to institute suit for
the enforcement of any payment on or with respect to any such Debt Security; (e)
reduce the amount payable upon acceleration of the Maturity of a Debt Security;
(f) in the case of the Subordinated Securities, modify the subordination
provisions in a manner adverse to the Holders of the Subordinated Securities and
the related Guarantees; (g) reduce the above stated percentage of Holders of
Debt Securities which is required for modification or amendment of the
applicable Indenture or for waiver of compliance with certain provisions of the
applicable Indenture or for waiver of certain defaults; or (h) change in any
adverse way the terms of the Guarantees with respect to the payment of the
principal of, premium, if any, and interest on the Debt Securities. (Section
9.2)
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The Holders of a majority in principal amount of the Outstanding Debt
Securities of each series and 66 2/3% in aggregate principal amount of the
Outstanding Debt Securities of all series affected thereby may on behalf of the
Holders of all Debt Securities of the series waive, insofar as the Debt
Securities of that series are concerned, compliance by the Guarantor and XTRA,
Inc. with certain restrictive provisions of the applicable Indenture. (Section
10.9) The Holders of a majority in principal amount of the Outstanding Debt
Securities of a series may on behalf of the Holders of all Debt Securities of
that series waive any past default under the applicable Indenture with respect
to that series of Debt Securities, except a default in the payment of the
principal of, premium, if any, or interest on any Debt Security of the series or
in respect of any provision which under the applicable Indenture cannot be
modified or amended without the consent of the Holder of each Debt Security of
that series affected. (Section 5.13)
The Indentures provide that in determining whether the Holders of the
requisite principal amount of the Outstanding Debt Securities have given or
taken any direction, notice, consent, waiver or other action under the
applicable Indenture as of any date, (i) the principal amount of an Original
Issue Discount Security that will be deemed to be Outstanding will be the amount
of the principal thereof that would be due and payable as of such date upon
acceleration of the Maturity thereof to such date, (ii) if, as of such date, the
principal amount payable at the Stated Maturity of a Debt Security is not
determinable (for example, because it is based on an index), the principal
amount of such Debt Security deemed to be Outstanding as of such date will be an
amount determined in the manner prescribed for such Debt Security, and (iii) the
principal amount of a Debt Security denominated in one or more foreign
currencies or currency units that will be deemed to be Outstanding will be the
U.S. dollar equivalent, determined as of such date in the manner prescribed for
such Debt Security (or, in the case of a Debt Security described in clause (i)
or (ii) above, of the amount described in such clause). Certain Debt Securities,
including those for whose payment or redemption money has been deposited or set
aside in trust for the Holders and those that have been fully defeased pursuant
to Section 13.2, will not be deemed to be Outstanding. (Section 1.1)
Except in certain limited circumstances, XTRA, Inc. will be entitled to set
any day as a record date for the purpose of determining the Holders of
Outstanding Debt Securities of any series entitled to give or take any
direction, notice, consent, waiver or other action under the applicable
Indenture, in the manner and subject to the limitations provided in the
applicable Indenture. In certain limited circumstances, the Trustee will be
entitled to set a record date for action by the Holders. If a record date is set
for any action to be taken by Holders of a particular series, such action may be
taken only by persons who are Holders of Outstanding Debt Securities of that
series on the record date. To be effective, such action must be taken by Holders
of the requisite principal amount of such Debt Securities within a specified
period following the record date. For any particular record date, this period
will be 180 days or such shorter period as may be specified by XTRA, Inc. (or
the Trustee, if it set the record date), and may be shortened or lengthened (but
not beyond 180 days) from time to time. (Section 1.4)
CONSOLIDATION, MERGER AND SALE OF ASSETS
Each of XTRA, Inc. and the Company, without the consent of any Holders of
Debt Securities, may consolidate or merge with or into, or transfer or lease its
assets substantially as an entirety to, any Person, and any other Person may
consolidate or merge with or into, or transfer or lease its assets substantially
as an entirety to, XTRA, Inc. or the Company, provided that (i) the Person (if
other than XTRA, Inc. or the Company) formed by such consolidation or into which
XTRA, Inc. or the Company is merged or which acquires or leases the assets of
XTRA, Inc. or the Company substantially as an entirety is a corporation,
partnership or trust organized and validly existing under the laws of any United
States jurisdiction and assumes XTRA, Inc.'s or the Company's obligations on the
Debt Securities or the Guarantees, as the case may be, and under the Indentures,
(ii) after giving effect to such transaction no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default,
shall have happened and be continuing, and (iii) certain other conditions are
met. (Article Eight)
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NOTICES
Notices to Holders of Debt Securities will be given by mail to the addresses
of such Holders as they may appear in the Security Register. (Sections 1.1 and
1.6)
TITLE
XTRA, Inc., the Guarantor, the Trustees and any agent of XTRA, Inc., the
Guarantor or the Trustees may treat the Person in whose name a Debt Security is
registered as the absolute owner thereof (whether or not such Debt Security may
be overdue) for the purpose of making payment and for all other purposes.
(Section 3.8)
GOVERNING LAW
The Indentures and the Debt Securities will be governed by, and construed in
accordance with, the law of the State of New York. (Section 1.12)
CONCERNING THE TRUSTEES
The Indentures contain certain limitations on the right of the Trustees,
should they become a creditor of XTRA, Inc. or the Guarantor, to obtain payment
of claims in certain cases, or to realize for their own account on certain
property received in respect of any such claim as security or otherwise.
(Section 6.13) The Trustees will be permitted to engage in certain other
transactions; however, if they acquire any conflicting interest and there is a
default under the Debt Securities, they must eliminate such conflict or resign.
(Section 6.8)
DESCRIPTION OF PREFERRED STOCK OF XTRA CORPORATION
The following description of the terms of the Preferred Stock sets forth
certain general terms and provisions of the Preferred Stock to which any
Prospectus Supplement may relate. Certain other terms of any series of the
Preferred Stock offered by any Prospectus Supplement will be described in such
Prospectus Supplement. The description of certain provisions of the Preferred
Stock set forth below and in any Prospectus Supplement does not purport to be
complete and is subject to and qualified in its entirety by reference to the
Company's Restated Certificate of Incorporation and By-laws, including the
definitions therein of certain terms, and the certificate of designations (each
a "Certificate of Designations") relating to each series of the Preferred Stock
that will be filed with the Commission and incorporated by reference as an
exhibit to the Registration Statement of which this Prospectus is a part at or
prior to the time of the issuance of such series of the Preferred Stock. Copies
of the Restated Certificate of Incorporation and the By-laws are incorporated by
reference as exhibits to the Registration Statement of which this Prospectus is
part.
GENERAL
Under the Company's Restated Certificate of Incorporation, the Company is
authorized to issue up to 3,000,000 shares of Preferred Stock, in one or more
series, with such designations, voting powers, preferences and relative
participating, optional or other special rights, and with such qualifications,
limitations or restrictions thereon, as may be stated or expressed in
resolutions providing for the creation and issuance thereof adopted by the Board
of Directors of the Company. Thus, without stockholder approval, the Board of
Directors could authorize the issuance of Preferred Stock with voting,
conversion and other rights that could dilute the voting power and other rights
of the holders of Common Stock. No Preferred Stock is currently outstanding.
The Preferred Stock shall have the dividend, liquidation, redemption and
voting rights set forth below, unless otherwise provided in a Prospectus
Supplement relating to a particular series of the
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Preferred Stock. Reference is made to the Prospectus Supplement relating to the
particular series of the Preferred Stock offered hereby for specific terms,
including: (i) the designation and stated value per share of such Preferred
Stock and the number of shares offered; (ii) the amount of liquidation
preference per share; (iii) the initial public offering price at which such
Preferred Stock will be issued; (iv) the dividend rate (or method of
calculation), the dates on which dividends shall be payable and the dates from
which dividends shall commence to cumulate, if any; (v) any redemption or
sinking fund provisions; (vi) any conversion rights; and (vii) any additional
voting, dividend, liquidation, redemption, sinking fund and other rights,
preferences, privileges, limitations and restrictions.
The Preferred Stock will, when issued, be fully paid and nonassessable and
will have no preemptive rights. Unless otherwise provided in the applicable
Prospectus Supplement, each series of the Preferred Stock will rank on a parity
as to the payment of dividends and amounts upon dissolution, liquidation or
winding up of the Company. The rights of the holders of each series of the
Preferred Stock will be subordinate to those of the Company's general creditors.
DIVIDEND RIGHTS
Holders of the Preferred Stock of each series will be entitled to receive,
when, as and if declared by the Board of Directors of the Company, out of funds
of the Company legally available therefor, cash dividends on such dates and at
such rates as are set forth in, or as are determined by the method described in,
the Prospectus Supplement relating to such series of the Preferred Stock. Such
rate may be fixed or variable or both. Each such dividend will be payable to the
holders of record as they appear on the stock books of the Company on such
record dates, fixed by the Board of Directors of the Company, as specified in
the Prospectus Supplement relating to such series of Preferred Stock.
Such dividends may be cumulative or noncumulative, as provided in the
Prospectus Supplement relating to such series of Preferred Stock. If the Board
of Directors of the Company fails to declare a dividend payable on a dividend
payment date on any series of Preferred Stock for which dividends are
noncumulative, then the right to receive a dividend in respect of the dividend
period ending on such dividend payment date will be lost, and the Company will
have no obligation to pay the dividend accrued for such period, whether or not
dividends on such series are declared payable on any future dividend payment
dates. Dividends on the shares of each series of Preferred Stock for which
dividends are cumulative will accrue from the date on which the Company
initially issues shares of such series or such other dates as may be set forth
in the applicable Prospectus Supplement.
Unless otherwise specified in the applicable Prospectus Supplement, so long
as the shares of any series of the Preferred Stock are outstanding, unless (i)
full dividends (including, if such Preferred Stock is cumulative, dividends for
prior dividend periods) have been paid or declared and set apart for payment on
all outstanding shares of the Preferred Stock of such series (other than Junior
Stock, as defined below) and (ii) the Company is not in default or in arrears
with respect to the mandatory or optional redemption or mandatory repurchase or
other mandatory retirement of, or with respect to any sinking or other analogous
fund for, any shares of Preferred Stock of such series (other than Junior
Stock), the Company may not declare any dividends on any shares of Common Stock
of the Company or any other stock of the Company ranking as to the payment of
dividends or amounts upon dissolution, liquidation or winding up of the Company
junior to such series of Preferred Stock (the Common Stock and any such other
stock being herein referred to as "Junior Stock"), or make any payment on
account of, or set apart money for, the purchase, redemption or other retirement
of, or for a sinking or other analogous fund for, any shares of Junior Stock or
make any distribution in respect thereof, whether in cash or property or in
obligations or stock of the Company, other than Junior Stock that is neither
convertible into, nor exchangeable or exercisable for, any securities of the
Company other than Junior Stock and other than as a result of the
reclassification of Junior Stock.
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LIQUIDATION PREFERENCES
Unless otherwise specified in the applicable Prospectus Supplement, in the
event of any liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary, the holders of a series of Preferred Stock will be
entitled to receive out of the assets of the Company available for distribution
to stockholders, before any distribution of assets is made to the holders of
Junior Stock, the amount set forth in the Prospectus Supplement relating to such
series of the Preferred Stock. If, upon any voluntary or involuntary
liquidation, dissolution or winding up of the Company, the amounts payable with
respect to the Preferred Stock of any series and any other shares of preferred
stock of the Company (including any other series of the Preferred Stock) ranking
as to the payment of amounts upon the dissolution, liquidation or winding up of
the Company on a parity with such series of the Preferred Stock are not paid in
full, the holders of the Preferred Stock of such series and of such other shares
of preferred stock of the Company will share ratably in any such distribution of
assets of the Company in proportion to the full respective preferential amounts
to which they are entitled. After payment to the holders of the Preferred Stock
of each series of the full preferential amounts of the liquidating distribution
to which they are entitled, the holders of each such series of the Preferred
Stock will be entitled to no further participation in any distribution of assets
by the Company.
REDEMPTION
A series of the Preferred Stock may be redeemable, in whole or from time to
time in part, at the option of the Company, and may be subject to mandatory
redemption pursuant to a sinking fund or otherwise, in each case upon terms, at
the times and at the redemption prices set forth in the Prospectus Supplement
relating to such series. Shares of the Preferred Stock redeemed by the Company
will be restored to the status of authorized but unissued shares of preferred
stock of the Company.
In the event that fewer than all of the outstanding shares of a series of
the Preferred Stock are to be redeemed, whether by mandatory or optional
redemption, the number of shares to be redeemed will be determined by lot or pro
rata (subject to rounding to avoid fractional shares) as may be determined by
the Company or by any other method as may be determined by the Company in its
sole discretion to be equitable. From and after the redemption date (unless
default is made by the Company in providing for the payment of the redemption
price plus accumulated and unpaid dividends, if any) dividends will cease to
accumulate on the shares of the Preferred Stock called for redemption and all
rights of the holders thereof (except the right to receive the redemption price
plus accumulated and unpaid dividends, if any) will cease.
Unless otherwise specified in the applicable Prospectus Supplement, so long
as any dividends on shares of any series of the Preferred Stock or any other
series of preferred stock of the Company ranking on a parity as to payment of
dividends and amounts upon the liquidation, dissolution or winding up of the
Company with such series of the Preferred Stock are in arrears, no shares of any
such series of the Preferred Stock or such other series of preferred stock of
the Company will be redeemed (whether by mandatory or optional redemption)
unless all such shares are simultaneously redeemed, and the Company will not
purchase or otherwise acquire any such shares; provided, however, that the
foregoing will not prevent the purchase or acquisition of such shares pursuant
to a purchase or exchange offer made on the same terms to holders of all such
shares outstanding.
CONVERSION RIGHTS
The terms, if any, on which shares of Preferred Stock of any series may be
exchanged for or converted (mandatorily or otherwise) into shares of Common
Stock or another series of Preferred Stock will be set forth in the Prospectus
Supplement relating thereto.
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VOTING RIGHTS
Except as indicated in a Prospectus Supplement relating to a particular
series of the Preferred Stock, or except as required by applicable Delaware law
or in the Company's Restated Certificate of Incorporation or as described below,
the holders of the Preferred Stock will not be entitled to vote for any purpose.
Unless otherwise specified in the related Prospectus Supplement, if cumulative
accrued dividends on any Preferred Stock have not been paid in an aggregate
amount equal to or greater than six quarterly dividends on such shares, the
Board of Directors shall increase by two the number of directors (and if
necessary amend the By-laws therefor) and the holders of the Preferred Stock,
voting as a single class, will be entitled to elect such additional two
directors to the Board of Directors until all such dividends in default have
been paid in full.
TRANSFER AGENT AND REGISTRAR
Unless otherwise indicated in a Prospectus Supplement relating thereto,
Boston EquiServe LLP will be the transfer agent, dividend and redemption price
disbursement agent and registrar for shares of each series of the Preferred
Stock. See "Description of Common Stock of XTRA Corporation--General."
DESCRIPTION OF COMMON STOCK OF XTRA CORPORATION
The following description of the terms of the Common Stock sets forth
certain general terms and provisions of the Common Stock to which any Prospectus
Supplement may relate. The description of certain provisions of the Common Stock
set forth below and in any Prospectus Supplement does not purport to be complete
and is subject to and qualified in its entirety by reference to the Company's
Restated Certificate of Incorporation and By-laws, including the definitions
therein of certain terms. Copies of the Restated Certificate of Incorporation
and the By-laws are incorporated by reference as exhibits to the Registration
Statement of which this Prospectus is part.
GENERAL
The Company's Restated Certificate of Incorporation authorizes the issuance
of up to 30,000,000 shares of Common Stock, par value $.50 per share, of which
15,256,334 shares have been issued and were outstanding as of March 31, 1997.
The Common Stock of the Company is listed on the New York Stock Exchange and the
additional shares of Common Stock that may be offered hereby will be listed,
subject to notice of issuance, on such exchange.
The Transfer Agent and Registrar for the Company's Common Stock is Boston
EquiServe LLP, Mail Stop 45-02-64, P.O. Box 644, Boston, Massachusetts
02102-0644. In New York City, the Common Stock may be presented for transfer at
the office of BancBoston Trust Company of New York, One Exchange Plaza, 3rd
Floor, 55 Broadway, New York, New York 10006.
Each holder of Common Stock is entitled to one vote for each share held.
Holders of Common Stock do not have preemptive rights and are not entitled to
cumulative voting in the election of Directors. All outstanding shares of Common
Stock are, and the shares of Common Stock that may be offered hereby when issued
will be, fully paid and non-assessable. The Board of Directors is authorized to
issue from time to time all of the authorized but unissued shares of Common
Stock.
In case of any liquidation, dissolution or winding up of the Company, the
holders of Common Stock are entitled to share pro rata in the distribution of
all assets of the Company remaining after the holders of any series of Preferred
Stock have been paid the preference designated for such shares.
Subject to the senior rights of any Preferred Stock, the holders of Common
Stock are entitled to receive dividends when and as declared by the Board of
Directors and paid by the Company from funds legally available therefor. The
Company's source of funds for the payment of cash dividends is advances and
dividends from its subsidiary, XTRA, Inc. Several of the Company's loan
agreements contain
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restrictions on the payment of cash dividends by the Company, including
limitations restricting dividends to a fixed amount plus consolidated net income
of the Company earned since a date specified in the relevant agreement. In
addition, such loan agreements restrict the payment of advances and dividends to
the Company from its subsidiary, XTRA, Inc.
CERTAIN OTHER PROVISIONS OF THE RESTATED CERTIFICATE OF INCORPORATION
Delaware law permits a corporation to eliminate the personal liability of
its directors to the corporation or to any of its stockholders for monetary
damages for a breach of fiduciary duty as a director, except (i) for breach of
the director's duty of loyalty, (ii) for acts or omissions not in good faith or
which involve intentional misconduct or a knowing violation of law, (iii) for
certain unlawful dividends and stock repurchases or (iv) for any transaction
from which the director derived an improper personal benefit. The Company's
Restated Certificate of Incorporation provides that no director of the Company
will be personally liable to the Company or its stockholders for monetary
damages for any breach of his fiduciary duty as a director, except as provided
by Delaware law.
As permitted by Delaware law, the Company's Restated Certificate of
Incorporation does not permit stockholder action by written consent. The
affirmative vote of the holders of at least 80% of the Company's then
outstanding Common Stock is required to amend, alter or repeal this provision.
The Company's By-laws provide that stockholder nominations of candidates for
election as directors and other stockholder proposals generally must be received
by the Secretary of the Company not less than 60 nor more than 90 days prior to
the applicable stockholders' meeting.
The Company is subject to the provisions of Section 203 of the General
Corporation Law of Delaware. In general, this statute prohibits a publicly-held
Delaware corporation from engaging in a "business combination" with an
"interested stockholder" for a period of three years after the date of the
transaction in which the person became an interested stockholder, unless the
business combination is approved in a prescribed manner. An "interested
stockholder" is a person who, together with affiliates and associates, owns (or
within the prior three years did own) 15% or more of the corporation's voting
stock.
HOLDING COMPANY STATUS
Because the Company is a holding company, the right of the Company to
participate in any distribution of assets of any subsidiary upon its liquidation
or reorganization (and thus the ability of the Company's stockholders to benefit
indirectly from such distribution) would be subject to the prior claims of
creditors of that subsidiary, except to the extent that the Company itself may
be a creditor of that subsidiary with recognized claims. In addition, XTRA, Inc.
conducts its leasing business primarily through fleet management agreements with
its subsidiaries, which accounted for 20% of XTRA, Inc.'s consolidated assets at
March 31, 1997 and for 95% of its consolidated revenues for fiscal 1996. The
right of XTRA, Inc. to participate in any distribution of assets of any
subsidiary upon its liquidation or reorganization (and thus the ability of the
Company's stockholders to benefit indirectly from such distribution) would be
subject to the prior claims of creditors of that subsidiary, except to the
extent that XTRA, Inc. itself may be a creditor of that subsidiary with
recognized claims. See, "The Company" for the right of XTRA, Inc. to terminate
the fleet management agreements.
PLAN OF DISTRIBUTION
The Company and/or XTRA, Inc. may sell Securities to or through underwriters
or to dealers acting as principals for their own account and also may sell
Securities directly to other purchasers or through agents. The Company and XTRA,
Inc. reserve the right to sell Securities directly to investors on their own
behalf in those jurisdictions where they are authorized to do so.
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Underwriters may offer and sell the Securities at a fixed price or prices
that may be changed, at market prices prevailing at the time of sale, at prices
related to such prevailing market prices or at negotiated prices. The Company or
XTRA, Inc. also may, from time to time, authorize dealers, acting as the
Company's or XTRA, Inc.'s agents, as the case may be, to offer and sell the
Securities upon such terms and conditions as set forth in the related Prospectus
Supplement. In connection with the sale of the Securities, underwriters may
receive compensation from the Company or XTRA, Inc. in the form of underwriting
discounts or commissions and may also receive commissions from purchasers of the
Securities for whom they may act as agent. Underwriters may sell the Securities
to or through dealers, and such dealers may receive compensation in the form of
discounts, concessions or commissions from the underwriters and/or commissions
from the purchasers for whom they may act as agents.
Any underwriting compensation paid by the Company or XTRA, Inc. to
underwriters or agents in connection with the offering of the Securities, and
any discounts, concessions or commissions allowed by underwriters to
participating dealers, will be set forth in the related Prospectus Supplement.
Dealers and agents participating in the distribution of the Securities may be
deemed to be underwriters, and any discounts and commissions received by them
and any profit realized by them on resale of the Securities may be deemed to be
underwriting discounts and commissions. Underwriters, dealers and agents may be
entitled, under agreements entered into with the Company and/or XTRA, Inc., to
indemnification against and contribution towards certain civil liabilities.
If so indicated in a Prospectus Supplement, the Company and/or XTRA, Inc.
will authorize underwriters or other persons acting as the Company's and/or
XTRA, Inc.'s agents to solicit offers by certain institutions to purchase
Securities from the Company and/or XTRA, Inc. pursuant to contracts providing
for payment and delivery on a future date. Institutions with which such
contracts may be made include commercial and savings banks, insurance companies,
pension funds, investment companies, educational and charitable institutions and
others, but in all cases such institutions must be approved by the Company
and/or XTRA, Inc. The obligations of any purchaser under any such contract will
be subject to the condition that the purchase of the Securities shall not at the
time of delivery be prohibited under the laws of the jurisdiction to which such
purchaser is subject. The underwriters and such other agents will not have any
responsibility in respect of the validity or performance of such contracts.
Any Securities issued hereunder (other than Common Stock) will be new issues
of securities with no established trading market. Neither the Company nor XTRA,
Inc. currently intends to apply for the listing of any Securities (other than
the Common Stock) on any national securities exchange. No assurance can be given
as to the liquidity of the trading market for any such Securities.
Certain of the underwriters or agents and their associates may be customers
of, engage in transactions with and perform services for XTRA, Inc. or the
Company in the ordinary course of business.
VALIDITY OF SECURITIES
The validity of the Securities offered hereby will be passed upon for XTRA,
Inc. and the Company by Ropes & Gray, One International Place, Boston,
Massachusetts 02110, and for any underwriter or agent by Sullivan & Cromwell,
125 Broad Street, New York, New York 10004.
EXPERTS
The audited consolidated financial statements and schedules of the Company
incorporated by reference in this Prospectus have been audited by Arthur
Andersen LLP, independent public accountants, as indicated in their reports with
respect thereto, and are incorporated by reference herein in reliance upon the
authority of said firm as experts in giving said reports.
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NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN OR INCORPORATED BY REFERENCE IN
THIS PROSPECTUS AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES
OTHER THAN THE SECURITIES DESCRIBED IN THIS PROSPECTUS OR AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES IN ANY CIRCUMSTANCE IN WHICH
SUCH OFFER OR SOLICITATION IS UNLAWFUL. NEITHER THE DELIVERY OF THIS PROSPECTUS
NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY
IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY OR XTRA,
INC. SINCE THE DATE HEREOF OR THEREOF OR THAT THE INFORMATION CONTAINED OR
INCORPORATED BY REFERENCE HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE
DATE OF SUCH INFORMATION.
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TABLE OF CONTENTS
PROSPECTUS
<TABLE>
<S> <C>
Available Information..................................................... 2
Incorporation of Certain Documents by Reference........................... 3
The Company............................................................... 4
Use of Proceeds........................................................... 4
Consolidated Ratios of Earnings to Fixed Charges and Consolidated Ratio of
Earnings to Combined Fixed Charges and Preferred Stock Dividends........ 4
Description of Debt Securities of XTRA, Inc............................... 5
Description of Preferred Stock of XTRA Corporation........................ 16
Description of Common Stock of XTRA Corporation........................... 19
Plan of Distribution...................................................... 20
Validity of Securities.................................................... 21
Experts................................................................... 21
</TABLE>
$604,000,000
XTRA CORPORATION
PREFERRED STOCK
COMMON STOCK
XTRA, INC.
DEBT SECURITIES
GUARANTEED AS TO THE PAYMENT OF PRINCIPAL, PREMIUM, IF ANY,
AND INTEREST BY XTRA CORPORATION
---------------------
PROSPECTUS
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PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.*
<TABLE>
<S> <C>
SEC Registration fee............................................................. $ 225,863
Printing and engraving expenses.................................................. 50,000
Fees and expenses of Trustee, Transfer Agent and Registrar....................... 15,000
Accounting fees and expenses..................................................... 20,000
Legal fees and expenses.......................................................... 150,000
Blue sky fees and expenses (including fees of counsel)........................... 35,000
Rating Agency fees............................................................... 50,000
Miscellaneous.................................................................... 38,137
Total............................................................................ $ 584,000
</TABLE>
* All amounts except the SEC Registration fee are estimated.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The General Corporation Law of the State of Delaware, in which XTRA
Corporation is incorporated, gives a corporation power to indemnify any of its
officers or directors against certain expenses, judgments, fines and amounts
paid in settlement in connection with certain actions, suits or proceedings,
provided generally, that such person acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. In addition, the statutes
of Delaware contain provisions to the general effect that any director shall in
the performance of his duties be fully protected in relying in good faith upon
the books of account or records of the corporation or statements prepared by any
official of the corporation.
The Restated Certificate of Incorporation of XTRA Corporation includes the
following provision:
This corporation shall, to the maximum extent permitted from time to time
under the law of the State of Delaware, indemnify and upon request shall advance
expenses to any person who is or was a party or is threatened to be made a party
to any threatened, pending or completed action, suit, proceeding or claim,
whether civil, criminal, administrative or investigative, by reason of the fact
that he is or was or has agreed to be a director or officer of this corporation
or while a director or officer is or was serving at the request of this
corporation as a director, officer, partner, trustee, employee or agent of any
corporation, partnership, joint venture, trust or other enterprise, including
service with respect to employee benefit plans, against expenses (including
attorney's fees and expenses), judgments, fines, penalties and amounts paid in
settlement incurred in connection with the investigation, preparation to defend
or defense of such action, suit, proceeding, or claim; provided, however, that
the foregoing shall not require this corporation to indemnify or advance
expenses to any person in connection with any action, suit, proceeding, claim or
counterclaim initiated by or on behalf of such person. Such indemnification
shall not be exclusive of other indemnification rights arising under any by-law,
agreement, vote of directors or stockholders or otherwise and shall inure to the
benefit of the heirs and legal representatives of such person. Any repeal or
modification of the foregoing provisions of this Article 9 shall not adversely
affect any right or protection of a director or officer of this corporation
existing at the time of such repeal or modification.
The Business Corporation Act of the State of Maine, in which XTRA, Inc. is
incorporated, gives a corporation power to indemnify any of its officers or
directors against certain expenses, judgments, fines, and amounts paid in
settlement in connection with certain actions, suits or proceedings, provided
generally, that such person acted in good faith and in the reasonable belief
that his action was in the best
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interests of the corporation, and with respect to any criminal action or
proceeding, had no reasonable cause to believe that his conduct was unlawful. In
addition, the statute provides that if a director or officer is successful in
the merits or otherwise in defense of certain actions, suits or proceedings
against him, while serving as a director or officer of the corporation, the
corporation shall indemnify him against expenses reasonably incurred in defense
of such claim, including attorney's fees.
The By-laws of XTRA, Inc. include the following provision:
The corporation shall indemnify any person who is or was a director,
officer, employee or agent of the corporation, or who is or was serving in
another capacity at the request of the corporation, to the extent authorized by
the Maine Business Corporation Act and may purchase and maintain insurance to
protect itself against liability for such indemnification.
In addition, XTRA Corporation maintains a directors' and officers' liability
insurance policy.
XTRA Corporation has entered into Indemnification Agreements, the form of
which was approved by the stockholders of XTRA Corporation, with certain
officers of XTRA Corporation and its subsidiaries, including XTRA, Inc. The
Indemnification Agreements provide a number of procedures, presumptions and
remedies used in the determination of the right of the officer to
indemnification. These procedures, presumptions and remedies substantially
broaden the indemnity rights of officers beyond that provided by XTRA
Corporation's Restated Certificate of Incorporation described above. If an
action against an indemnified party is dismissed with or without prejudice, the
defense is deemed to have been successful and the indemnification is required to
be made. The Indemnification Agreements provide that expenses must be paid
within twenty days of any request and that a determination of entitlement must
be made within sixty days of the indemnification request (otherwise a
determination in favor of the indemnified party is deemed to have been made). If
there is a change in control of XTRA Corporation (as defined in the
Indemnification Agreement), the indemnified party is presumed to be entitled to
indemnification (although XTRA Corporation may overcome this presumption), the
indemnified party may require that independent counsel make the determination of
entitlement and may choose such counsel, subject to objection by the Company on
limited grounds. If a determination of entitlement is made, XTRA Corporation is
bound, but if the indemnified party has previously been denied indemnification
pursuant to the terms of the Indemnification Agreement he or she is entitled to
seek a de novo determination from a court. XTRA Corporation is precluded from
challenging the validity of the procedures and presumptions contained in the
Indemnification Agreement in any court proceeding. The Indemnification Agreement
covers proceedings brought on or after the date of the execution of the
particular Indemnification Agreement, including proceedings based on acts prior
to the date of the particular agreement.
ITEM 16. EXHIBITS.
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
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<C> <S>
1* Form of Distribution Agreement among XTRA, Inc., the Company, Goldman, Sachs &
Co., Smith Barney Inc., Donaldson, Lufkin & Jenrette Securities Corporation and
Morgan Stanley & Co. Incorporated relating to Series C Medium Term Notes.
4.1 Restated Certificate of Incorporation of the Company. (Filed with the
Securities and Exchange Commission as Exhibit 3.1 to Company's Annual Report on
Form 10-K for the year ended September 30, 1989, incorporated herein by
reference).
4.2 Certificate of Elimination of Designation, Preference and Rights of Series A
Participating Preferred Stock. (Filed with the Securities and Exchange
Commission as Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for
the quarter ended June 30, 1991, incorporated herein by reference).
</TABLE>
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<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
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<C> <S>
4.3 Certificate of Amendment of Restated Certificate of Incorporation. (Filed March
5, 1993 with the Securities and Exchange Commission as Exhibit 4.4 to the
Company's Registration Statement on Form S-3, File No. 33-59132, incorporated
herein by reference).
4.4 Certificate of Elimination of Designation, Preference and Rights of $1.9375
Series B Cumulative Convertible Preferred Stock. (Filed March 5, 1993 with the
Securities and Exchange Commission as Exhibit 4.5 to the Company's Registration
Statement on Form S-3, File No. 33-59132, incorporated herein by reference).
4.5 Certificate of Elimination of Designation, Preference and Rights of Series C
Cumulative Redeemable Exchangeable Preferred Stock of the Company. (Filed July
26, 1994 with the Securities and Exchange Commission as Exhibit 4.5 to the
Company's Registration Statement on Form S-3, File No 33-54747, incorporated
herein by reference).
4.6 Amended and Restated By-laws of the Company. (Filed with the Securities and
Exchange Commission as Exhibit 3(b) to the Company's Quarterly Report on Form
10-Q for the quarter ended December 31, 1995, incorporated herein by
reference).
4.7 Indenture by and among XTRA, Inc., XTRA Corporation and The First National Bank
of Boston dated as of August 15, 1994. (Filed with the Securities and Exchange
Commission as Exhibit 4.1 to the Company's Current Report on Form 8-K dated
August 15, 1994, incorporated herein by reference).
4.7.1 First Supplemental Indenture, dated as of September 30, 1994, to the Indenture
referred to in Exhibit 4.7, among XTRA, Inc., XTRA Missouri, Inc. XTRA
Corporation and The First National Bank of Boston. (Filed with the Securities
and Exchange Commission as Exhibit 4.2.1 to the Company's Annual Report on Form
10-K for the year ended September 30, 1994, incorporated herein by reference).
4.7.2* Form of Second Supplemental Indenture to the Indenture referred to in Exhibit
4.7, among XTRA, Inc., XTRA Corporation and State Street Bank and Trust
Company.
4.8* Form of Subordinated Indenture.
4.9 Form of fixed rate Medium Term Note.
4.10 Form of floating rate Medium Term Note.
5 Opinion of Ropes & Gray.
12.1 Statement regarding computation of ratio of earnings to fixed charges of XTRA
Corporation.
12.2 Statement regarding computation of ratio of earnings to combined fixed charges
and preferred stock dividends of XTRA Corporation.
12.3 Statement regarding computation of ratio of earnings to fixed charges of XTRA,
Inc.
23.1 Consent of Arthur Andersen L.L.P.
23.3 Consent of Ropes & Gray (included in Exhibit 5).
24* Power of Attorney (included under Signatures and Power of Attorney).
25* Form T-1 Statement of eligibility and qualification under the Trust Indenture
Act of 1939, as amended, of State Street Bank and Trust Company, as Senior
Trustee.
</TABLE>
- ------------------------
* These exhibits have been previously filed.
Any underwriting agreement or additional form of distribution agreement in
respect of the Securities and any additional form or forms of securities with
respect to each offering of Securities registered hereunder will be filed as an
exhibit to a Current Report on Form 8-K of XTRA Corporation and will be
incorporated herein by reference.
II-3
<PAGE>
ITEM 17. UNDERTAKINGS.
The undersigned registrants hereby undertake: (1) To file, during any period
in which offers or sales are being made, a post-effective amendment to this
registration statement:
(i) To include any prospectus required by section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the
effective date of this registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in this
registration statement;
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in this registration statement or any
material change to such information in this registration statement;
provided, however, that the undertakings set forth in paragraphs (i) and
(ii) above do not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic
reports filed by the registrants pursuant to section 13 or section 15(d) of
the Securities Exchange Act of 1934 that are incorporated by reference in
this registration statement.
(2) That, for the purpose of determining any liability under the Securities
Act of 1933, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of the
offering.
(4) That, for the purposes of determining any liability under the Securities
Act of 1933, each filing of the registrants' annual report pursuant to section
13(a) or section 15(d) of the Securities Exchange Act of 1934 that is
incorporated by reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(5) To file an application for the purpose of determining the eligibility of
the Subordinated Trustee to act under Subsection (a) of Section 310 of the Trust
Indenture Act in accordance with the rules and regulations prescribed by the
Commission under Section 305(b)(2) of the Trust Indenture Act.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrants pursuant to the provisions described in Item 15 above, or otherwise,
the Registrants have been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrants of expenses incurred or paid by a director, officer, or controlling
person of the Registrants in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrants will, unless in
the opinion of their counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by them is against public policy as expressed in the Act
and will be governed by the final adjudication of such issue.
II-4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements to file on Form S-3 and has duly caused this Amendment to
Post-Effective Amendment No. 1 to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Boston, Commonwealth of Massachusetts,
on the 16th day of May 1997.
XTRA CORPORATION
BY: /S/ LEWIS RUBIN
-----------------------------------------
Lewis Rubin
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Pursuant to the requirements of the Securities Act of 1933, this Amendment
to Post-Effective Amendment No. 1 has been signed below by the following persons
in the capacities and on the dates indicated.
SIGNATURE TITLE DATE
- ------------------------------ --------------------------- -------------------
* Chairman of the Board and
- ------------------------------ Director May 16, 1997
Robert B. Goergen
* Vice Chairman of the Board
- ------------------------------ and Director May 16, 1997
Robert M. Gintel
President, Chief Executive
* Officer and Director
- ------------------------------ (Principal Executive May 16, 1997
Lewis Rubin Officer)
Vice President and Chief
* Financial Officer
- ------------------------------ (Principal Financial May 16, 1997
Michael J. Soja Officer)
* Vice President and
- ------------------------------ Controller May 16, 1997
Robert B. Blakeley
Director
- ------------------------------ May 16, 1997
H. William Brown
* Director
- ------------------------------ May 16, 1997
Herbert C. Knortz
* Director
- ------------------------------ May 16, 1997
Martin L. Solomon
* Director
- ------------------------------ May 16, 1997
Francis J. Palamara
*By: /s/ JAMES R. LAJOIE
------------------------
James R. Lajoie
ATTORNEY-IN-FACT
II-5
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements to file on Form S-3 and has duly caused this Amendment to
Post-Effective Amendment No. 1 to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Boston, Commonwealth of Massachusetts,
on the 16th day of May, 1997.
XTRA, INC.
BY: /S/ LEWIS RUBIN
-----------------------------------------
Lewis Rubin,
PRESIDENT
to the requirements of the Securities Act of 1933, this Amendment to
Post-Effective Amendment No. 1 has been signed below by the following persons in
the capacities and on the dates indicated.
SIGNATURE TITLE DATE
- ------------------------------ -------------------------- -------------------
* President and Director
- ------------------------------ (Chief Executive May 16, 1997
Lewis Rubin Officer)
Vice President, Chief
* Financial Officer
- ------------------------------ and Director (Principal May 16, 1997
Michael J. Soja Financial Officer)
/s/ JAMES R. LAJOIE
- ------------------------------ Vice President, General May 16, 1997
James R. Lajoie Counsel and Director
* Vice President and
- ------------------------------ Controller (Principal May 16, 1997
Robert B. Blakeley Accounting Officer)
*By: /s/ JAMES R. LAJOIE
-------------------------
James R. Lajoie
ATTORNEY-IN-FACT
II-6
<PAGE>
Fixed Rate Medium-Term Note
REGISTERED REGISTERED
No. R- PRINCIPAL AMOUNT:
CUSIP
XTRA, INC.
SERIES C MEDIUM-TERM NOTE
Unconditionally Guaranteed as to payment of principal, premium (if any),
and interest by
XTRA CORPORATION
If the registered owner of this Security (as indicated below) is The
Depository Trust Company (the "Depository") or a nominee of the Depository, the
Security is a Global Security and the following two legends apply:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
Unless this Security is presented by an authorized representative of The
Depository Trust Company (55 Water Street, New York, New York) to the Company or
its agent for registration of transfer, exchange or payment, and any Security
issued upon registration of transfer of, or in exchange for, or in lieu of, this
Security is registered in the name of Cede & Co. or such other name as requested
by an authorized representative of The Depository Trust Company and any payment
hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL because the registered owner
hereof, Cede & Co., has an interest herein.
<PAGE>
ISSUE PRICE: REGULAR RECORD DATES:
January 1
INTEREST PAYMENT DATES: July 1
January 15
July 15 INTEREST RATE:
ORIGINAL ISSUE DATE: INITIAL REDEMPTION DATE:
MATURITY DATE: REDEMPTION PRICES:
BOOK ENTRY __ CERTIFICATED __
OTHER TERMS:
XTRA, INC., a corporation duly organized and existing under the laws of the
State of Maine (herein called the "Company", which term includes any successor
corporation under the Indenture hereinafter referred to), for value received,
hereby promises to pay to,
tax identification number , or registered assigns, the
principal sum of on the Maturity Date
specified above and to pay interest thereon from the Original Issue Date
specified above or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, on the Interest Payment Dates in each year
specified above and at Maturity, commencing on the first such Interest Payment
Date next succeeding the Original Issue Date (or, if the Original Issue Date is
after a Regular Record Date and before the Interest Payment Date immediately
following such Regular Record Date, on the second such Interest Payment Date
next succeeding the Original Issue Date), at a rate per annum equal to the
Interest Rate specified above until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the person in whose name this security (or one or more Predecessor
Securities) is registered (which, if this Security is a Global Security, will be
the Depository or a nominee of the Depository) at the close of business on the
Regular Record Date for such interest, which shall be the first day (whether or
not a Business Day) of the month in
2
<PAGE>
which such Interest Payment Date occurs; provided, however, that interest
payable at Maturity will be payable to the person to whom principal shall be
payable (which, if this Security is a Global Security will be the Depository
or a nominee of the Depository.) Any such interest not so punctually paid or
duly provided for shall forthwith cease to be payable to the registered
Holder on such Regular Record Date and may either be paid to the person in
whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Trustee, notice of which shall
be given to the registered Holders of Securities of this Series not less than
10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which this Security may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.
Any payment on this Security due on any day which is not a Business Day (as
defined herein) in Boston, Massachusetts or New York, New York need not be made
on such day, but may be made on the next succeeding such Business Day with the
same force and effect as if made on such due date, and no interest shall accrue
for the period from and after such date.
Payment of the principal, premium (if any) and interest on this Security
will be made in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.
Payments of interest other than interest payable at Maturity will be made by
check mailed to the registered Holder hereof at the address shown in the
Security Register or, at the option of the registered Holder hereof, by wire
transfer in immediately available funds to an account located in the United
States of America as the registered Holder hereof shall designate to the Trustee
in writing at least 15 business days prior to such Interest Payment Date.
The principal amount hereof and interest due at Maturity will be paid upon
Maturity in immediately available funds by wire transfer against presentation of
this Security at the office or agency of State Street Bank and Trust Company as
Trustee and Paying Agent located at Two International Place, Boston,
Massachusetts 02110, or at such office in New York, New York as
3
<PAGE>
the Trustee shall designate by written notice to the registered Holder of
this Security. The Company may treat the person in whose name this Security
is registered as the owner of this Security for the purpose of receiving
payments of principal, premium (if any) and interest on this Security and for
all purposes whatsoever.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.
4
<PAGE>
Reverse of Security
This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or
more series under an Indenture, dated as of August 15, 1994, as supplemented
by the First Supplemental Indenture dated as of September 30, 1994, among the
Company, XTRA Corporation, as Guarantor (herein called a "Guarantor," which
term includes any successor Guarantor to XTRA Corporation under the
Indenture), and The First National Bank of Boston ("Bank of Boston"), as
Trustee and, as to the First Supplemental Indenture, XTRA Missouri, Inc. as
Guarantor, as further supplemented by the Second Supplemental Indenture dated
as of May __, 1997 among the Company, XTRA Corporation, as Guarantor, and
State Street Bank and Trust Company (as successor in interest to Bank of
Boston), as Trustee (as so supplemented, the "Indenture"), to which Indenture
reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Guarantor, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof.
If an Initial Redemption Date is specified on the face hereof, this
Security is subject to redemption upon notice by first-class mail given not
less than 30 nor more than 60 days prior to the date fixed for redemption, at
any time as a whole or in part, on or after the Initial Redemption Date, if
any, specified on the face hereof, at the election of the Company, at the
Redemption Prices, if any, specified on the face hereof, (expressed in
percentages of the principal amount), and thereafter at a redemption price
equal to 100% of the principal amount of this Security, plus accrued interest
to the Redemption Date; provided, that interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the
Holders of such Securities (or one or more Predecessor Securities) of record
at the close of business on the relevant Record Date referred to on the face
hereof, all as provided in the Indenture.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking
5
<PAGE>
institutions in Boston, Massachusetts or New York, New York are authorized
or obligated by law or executive order to close.
Payments of interest hereon with respect to any Interest Payment date will
include interest accrued to but excluding such Interest Payment Date.
Accrued interest hereon from the Original Issue Date or from the last date
to which interest has been paid or duly provided for is calculated on the basis
of a 360-day year of twelve 30-day months. Such interest shall accrue from the
Original Issue Date, or from the last date to which interest has been paid or
duly provided for, but excluding the date for which accrued interest is being
calculated.
In any case where any Interest Payment Date or the Stated Maturity of the
principal of this Security shall not be a Business Day, then (notwithstanding
any other provision hereof or of the Indenture) the payment of interest and/or
of principal need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on such
Interest Payment Date or at the Stated Maturity, and no interest shall accrue
with respect to such payment for the period from and after such Interest Payment
Date or Stated Maturity to such next succeeding Business Day.
If an Event of Default with respect to the Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.
The Indenture contains provisions for defeasance at any time of (i) the
entire indebtedness of this Security or (ii) certain covenants with respect to
this Security, in each case upon compliance with certain conditions set forth
therein.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the Guarantor and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company, the
Guarantor and the Trustee with the consent of the Holders of 66 2/3% in
principal amount of all Outstanding Securities at the time and of a majority
6
<PAGE>
in principal amount of the Securities at the time Outstanding of each series
to be affected. The Indenture also contains provisions permitting the
Holders of specified percentages in principal amount of all the Securities
and the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company,
the Guarantor, or both with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding upon
such Holder and upon all future Holders of this Security and of any Security
issued upon the registration of transfer hereof or in exchange herefore or in
lieu hereof, whether or not notation of such consent or waiver is made upon
this Security.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium (if any) and
interest on this Security at the times, place and rate (except as provided for
in such Security), and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations (including,
in the case of any Global Security, certain additional limitations) therein set
forth, the transfer of this Security is registrable in the Security Register,
upon surrender of such Securities for registration of transfer at the office or
agency of the Company in any place where the principal of, premium (if any) and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered form without
coupons in denominations of $100,000 and any integral multiple of $1,000 in
excess thereof. As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of
7
<PAGE>
a different authorized denomination, as requested by the Holder surrendering
the same.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the
Company, the Guarantor or the Trustee and any agent of the Company, the
Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Guarantor, the Trustee nor any such agent
shall be affected by notice to the contrary.
All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
This Security shall be governed by and construed in accordance with the
laws of the State of New York.
Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.
8
<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
XTRA, INC.
Dated: By:_________________________
Title: Vice President and
Chief Financial
Officer
Attest:
_____________________________
Title: Assistant Clerk
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series
designated in the within-mentioned Indenture
and referred to therein.
STATE STREET BANK AND TRUST COMPANY
as Trustee
By:_____________________________
Authorized Officer
Guarantee
For value received, XTRA Corporation, a corporation organized under the
laws of the State of Delaware (herein called the "Guarantor," which term
includes any successor corporation under
9
<PAGE>
the Indenture referred to in the Security upon which this Guarantee is
endorsed), hereby unconditionally guarantees to the Holder of the Security
upon which this Guarantee is endorsed and to the Trustee on behalf of each
such Holder the due and punctual payment of the principal of, premium, if
any, and interest on such Security when and as the same shall become due and
payable, whether at the Stated Maturity, by declaration of acceleration, call
for redemption or otherwise, according to the terms thereof and of the
Indenture referred to therein. In case of the failure of XTRA, Inc., a
corporation organized under the laws of the State of Maine (herein called the
"Company," which term includes any successor corporation under such
Indenture), punctually to make any such payment of principal, premium (if
any) or interest, the Guarantor hereby agrees to cause any such payment to be
made punctually when and as the same shall become due and payable, whether at
the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise, and as if such payment were made by the Company.
The Guarantor hereby agrees that its obligations hereunder shall be as if
it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of, and shall be unaffected by, any invalidity,
irregularity or unenforceability of such Security or such Indenture, any failure
to enforce the provisions of such Security or such Indenture, or any waiver,
modification or indulgence granted to the Company with respect thereto, by the
Holder of such Security or the Trustee or any other circumstance which may
otherwise constitute a legal or equitable discharge of a surety or guarantor;
provided, however, that, notwithstanding the foregoing, no such waiver,
modification or indulgence shall, without the consent of the Guarantor, increase
the principal amount of such Security or change the redemption terms thereof or
alter the Stated Maturity thereof. The Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
merger or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest or notice with respect to such Security or the
indebtedness evidenced thereby and all demands whatsoever, and covenants that
this Guarantee will not be discharged except by strict and complete performance
of the obligations contained in such Security and this Guarantee.
10
<PAGE>
The Guarantor shall be subrogated to all rights of the Holder of such
Security and the Trustee against the Company in respect of any amounts paid to
such Holder by the Guarantor pursuant to the provisions of this Guarantee;
provided, however, that the Guarantor shall not be entitled to enforce, or to
receive any payments arising out of or based upon, such right of subrogation
until the principal of, premium (if any), and interest on all Securities issued
under such Indenture shall have been paid in full.
No reference herein to such Indenture and no provision of this Guarantee or
of such Indenture shall alter or impair the guarantee of the Guarantor, which is
absolute and unconditional, of the due and punctual payment of principal,
premium (if any), and interest on the Security upon which this Guarantee is
endorsed.
This Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication of the Security upon which this Guarantee is
endorsed shall have been manually executed by or on behalf of the Trustee under
such Indenture.
All terms used in this Guarantee which are defined in such Indenture shall
have the meanings assigned to them in such Indenture.
This Guarantee shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be governed by and construed in
accordance with the laws of the State of New York.
Executed and dated the date on the face hereof.
XTRA CORPORATION
By: _________________________
Title: Vice President and
Chief Financial
Officer
Attest:
11
<PAGE>
_________________________
Title: Secretary
12
<PAGE>
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - ..Custodian..
(Cust)(Minor)
Uniform Gifts
to Minors Act
.........
(State)
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of
survivorship and not as tenants
in common
Additional abbreviations may also be used though not in the above list.
____________________________________
FOR VALUE RECEIVED I or we sell, assign and transfer to
INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE:
______________________________
__________________________________________________________________
(Print or type name, address and zip code of assignee)
__________________________________________________________________
13
<PAGE>
this Security and all rights hereunder and irrevocably appoint
attorney to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
Dated: ___________________________ Signed: ______________________________
Sign exactly as name
appears on the other side
___________________________ of this Note)
Signature(s) Guaranteed by:
NOTICE: The signature(s) to this assignment must correspond with the name as it
appears upon the face of the within Note in every particular, without alteration
or enlargement or any change whatever.
<PAGE>
Floating Rate (Resetting Weekly,
Monthly, Quarterly, Semi-Annually or Annually)
Medium-Term Note
REGISTERED REGISTERED
No. R- PRINCIPAL AMOUNT:
CUSIP
XTRA, INC.
SERIES C MEDIUM-TERM NOTE
Unconditionally Guaranteed as to payment of principal, premium (if any),
and interest by
XTRA CORPORATION
If the registered owner of this Security (as indicated below) is The
Depository Trust Company (the "Depository") or a nominee of the Depository, the
Security is a Global Security and the following two legends apply:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
Unless this Security is presented by an authorized representative of The
Depository Trust Company (55 Water Street, New York, New York) to the Company or
its agent for registration of transfer, exchange or payment, and any Security
issued upon registration of transfer of, or in exchange for, or in lieu of, this
Security is registered in the name of Cede & Co. or such other name as requested
by an authorized representative of The Depository Trust Company and any payment
hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR
<PAGE>
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL because the registered owner
hereof, Cede & Co., has an interest herein.
ISSUE PRICE: INITIAL REDEMPTION DATE:
ORIGINAL ISSUE DATE: MATURITY DATE:
BOOK ENTRY __ CERTIFICATED __
INTEREST RATE BASIS: INTEREST RESET DATE (applicable
only if Interest Reset Period is
semi-annual or annual)
Third Wednesday of:
INITIAL INTEREST RATE: INTEREST PAYMENT DATES:
INDEX MATURITY: INTEREST RESET PERIOD:
SPREAD (plus MAXIMUM INTEREST RATE:
or minus):
SPREAD MULTIPLIER: MINIMUM INTEREST RATE:
CALCULATION AGENT: INITIAL REDEMPTION
DATE:
REDEMPTION PERIODS: REDEMPTION PRICES:
OTHER TERMS:
XTRA, INC., a corporation duly organized and existing under the laws of the
State of Maine (herein called the "Company", which term includes any successor
corporation under the Indenture hereinafter referred to), for value received,
hereby promises to pay to , tax
identification number , or registered assigns, the
principal sum of on the Maturity Date specified above and
to pay interest thereon from the Original Issue Date specified above or from the
most recent Interest Payment Date (or, if the Interest Reset Dates specified
-2-
<PAGE>
above are weekly, from the day following the most recent Regular Record Date (as
defined herein)) to which interest has been paid or duly provided for, on the
Interest Payment Dates in each year specified above and at Maturity, commencing
on the first such Interest Payment Date next succeeding the Original Issue Date
(or, if the Original Issue Date is after a Regular Record Date and before the
Interest Payment Date immediately following such Regular Record Date, on the
second such Interest Payment Date next succeeding the Original Issue Date), at a
rate per annum equal to the Initial Interest Rate specified above until the
first Interest Reset Date following the Original Issue Date and on and after
such Interest Reset Date at the rate determined in accordance with the
provisions set forth herein, until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the person in whose name this security (or one or more Predecessor
Securities) is registered (which, if this Security is a Global Security, will be
the Depository or a nominee of the Depository) at the close of business on the
Regular Record Date for such interest, which shall be the 15th day (whether or
not a Business Day) prior to such Interest Payment Date; provided, however, that
interest payable at Maturity will be payable to the person to whom principal
shall be payable (which, if this Security is a Global Security, will be the
Depository or a nominee of the Depository.) Any such interest not so punctually
paid or duly provided for shall forthwith cease to be payable to the registered
Holder on such Regular Record Date and may either be paid to the person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice of which shall be given to the
Registered Holders of Securities of this Series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which this
Security may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.
If an Interest Payment Date would otherwise fall on a date that is not a
Market Day (as defined herein), such Interest Payment Date will be the next
succeeding Market Day (or, if the interest rate basis specified above is LIBOR,
if such day falls in the next calendar month, the next preceding Market Day).
Any
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<PAGE>
payment on this Security due on any day which is not a Business Day (as
defined herein) in Boston, Massachusetts or New York, New York need not be made
on such day, but may be made on the next succeeding such Business Day with the
same force and effect as if made on such due date, and no interest shall accrue
for the period from and after such date.
Payment of the principal, premium (if any) and interest on this Security
will be made in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.
Payments of interest other than interest payable at Maturity will be made by
check mailed to the registered Holder hereof at the address shown in the
Security Register or, at the option of the registered Holder hereof, by wire
transfer in immediately available funds to an account located in the United
States of America as the registered Holder hereof shall designate to the Trustee
in writing at least 15 days prior to such Interest Payment Date.
The principal amount hereof and Interest due at Maturity will be paid upon
Maturity in immediately available funds by wire transfer against presentation of
this Security at the office or agency of State Street Bank and Trust Company as
Trustee and Paying Agent located at Two International Place, Boston,
Massachusetts 02110, or at such office in New York, New York as the Trustee
shall designate by written notice to the registered Holder of this Security.
The Company may treat the person in whose name this Security is registered as
the owner of this Security for the purpose of receiving payments of principal,
premium (if any) and interest on this Security and for all purposes whatsoever.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.
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<PAGE>
Reverse of Security
-------------------
This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of August 15, 1994, as supplemented by the
First Supplemental Indenture dated as of September 30, 1994, among the Company,
XTRA Corporation, as Guarantor (herein called a "Guarantor," which term includes
any successor Guarantor to XTRA Corporation under the Indenture), and The First
National Bank of Boston ("Bank of Boston"), as Trustee and, as to the First
Supplemental Indenture, XTRA Missouri, Inc. as Guarantor, as further
supplemented by the Second Supplemental Indenture dated as of May __, 1997 among
the Company, XTRA Corporation, as Guarantor, and State Street Bank and Trust
Company (as successor in interest to Bank of Boston), as Trustee (as so
supplemented, the "Indenture"), to which Indenture reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Guarantor, the Trustee and the Holders
of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof.
If an Initial Redemption Date is specified on the face hereof, this
Security is subject to redemption upon notice by first-class mail given not less
than 30 nor more than 60 days prior to the date fixed for redemption, at any
time as a whole or in part, on or after the Initial Redemption Date, if any,
specified on the face hereof, at the election of the Company, at the Redemption
Prices, if any, specified on the face hereof, (expressed in percentages of the
principal amount), and thereafter at a redemption price equal to 100% of the
principal amount of this Security, plus accrued interest to the Redemption Date;
provided, that interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities (or one
or more Predecessor Securities) of record at the close of business on the
relevant Record Date referred to on the face hereof, all as provided in the
Indenture.
The rate of interest on this Security will be reset and become effective
weekly, monthly, quarterly, semiannually or annually (each an "Interest Reset
Period"), as set forth on the
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<PAGE>
face hereof depending on the Interest Reset Period specified herein; provided,
however, that (i) the interest rate in effect from the Original Issue Date to
the first Interest Reset Date (as defined below) will be the Initial Interest
Rate, and (ii) the interest rate in effect for the ten days immediately before
Stated Maturity of this security will be that in effect hereon on the tenth day
preceding such Stated Maturity. Except as provided in the next sentence, the
date or dates on which interest will reset (each an "Interest Reset Date") will
be, if this Security resets weekly (unless the Interest Rate Basis for this
Security is the Treasury Rate), the Wednesday of each week; if this Security
resets weekly and the Interest Rate Basis for this Security is the Treasury
Rate, the Tuesday of each week (except as provided below); if this Security
resets monthly, the third Wednesday of each month; if this Security resets
quarterly, the third Wednesday of each March, June, September and December; if
this Security resets semiannually, the third Wednesday of two months of each
year, as specified herein; and if this Security resets annually, the third
Wednesday of one month of each year, as specified herein. If any Interest
Reset Date would otherwise be a day that is not a Market Day for this Security,
the Interest Reset Date shall be postponed to the next day that is a Market Day
for this Security, except that if the Interest Rate Basis specified herein is
LIBOR and such next succeeding Market Day is the next succeeding calendar
month, such Interest Reset Date shall be the immediately preceding Market Day
for this Security.
"Market Day" means, for any Security other than a Security the rate of
interest on which shall be determined in accordance with the provisions under
the heading "LIBOR" below, any Business Day, and, for any Security the rate of
interest on which shall be determined in accordance with the provisions under
the heading "LIBOR" below, any such Business Day on which dealings in deposits
in U.S. dollars are transacted in the London interbank market. "Business Day",
means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in Boston, Massachusetts or New York, New York are
authorized or obligated by law or executive order to close.
The rate of interest on this Security in effect on any day on or after the
first Interest Reset Date shall equal either (i) if such day is an Interest
Reset Date, the interest rate for such Interest Reset Date or (ii) if such day
is not an Interest Reset
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<PAGE>
Date, the interest rate for the immediately preceding Interest Reset Date;
provided, however, that the interest rate in effect for the ten days
immediately before the Stated Maturity of this Security will be that in effect
hereon on the tenth day preceding such stated Maturity.
Except as otherwise specified in this paragraph, the rate of interest on
this security for each Interest Reset Date shall be the rate determined in
accordance with the provisions below under the heading below corresponding to
the Interest Rate Basis specified herein:
Commercial Paper Rate. If the Interest Rate Basis of this Security is the
Commercial Paper Rate, the interest rate hereon for any Interest Reset Date
shall equal (a) the Money Market Yield (calculated as described below) of
the per annum rate (quoted on a bank discount basis) for the relevant
Commercial Paper Interest Determination Date for commercial paper having
the Index Maturity specified herein, (i) as such rate is published by the
Board of Governors of the Federal Reserve System in "Statistical Release
H.15(519), Selected Interest Rates" or any successor publication of the
Board of governors of the Federal Reserve System ("H.15(519)") under the
heading "Commercial Paper" or (ii) if such rate is not published before
9:00 A.M., New York City time, on the relevant Calculation Date, then as
such rate is published by the Federal Reserve Bank of New York in its daily
statistical release, "Composite 3:30 P.M. Quotations for U.S. Government
Securities" or any successor publication published by the Federal Reserve
Bank of New York ("Composite Quotations") under the heading "Commercial
Paper" or (b) if by 3:00 P.M. New York City time, on such Calculation Date,
such rate is not yet published in either H.15(519) or Composite Quotations,
the Money Market Yield of the arithmetic mean of the offered per annum
rates (quoted on a bank discount basis) as of 11:00 A.M., New York City
time, on such Commercial Paper Interest Determination Date, of three
leading dealers of commercial paper in The City of New York selected by the
Calculation Agent for commercial paper of the Index Maturity specified
herein placed for an industrial issuer whose bond rating is "AA", or the
equivalent, from a nationally recognized rating agency, in any of the above
cases (a) or (b) as adjusted (x) by the addition or subtraction of the
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Spread, if any, specified herein, and then (y) by the multiplication by the
Spread Multiplier, if any, specified herein; provided, however, that, if
fewer than three dealers selected as provided above by the Calculation
Agent are quoting as mentioned in this sentence, the interest rate herein
for such Interest Reset Date will be the interest rate hereon in effect on
such Commercial Paper Interest Determination Date (or, in the case of the
first Interest Reset Date, the Initial Interest Rate). "Money Market
Yield" shall be a yield (expressed an a percentage) calculated in
accordance with the following formula:
Money Market Yield = 100 x 360 x D
--------
360 - (D x M)
where "D" refers to the per annum rate for commercial paper, quoted on a
bank discount basis and expressed as a decimal and "M" refers to the actual
number of days in the interest period for which the interest is being
calculated.
Prime Rate. If the Interest Rate Basis of this Security is the Prime Rate,
the interest rate hereon for any Interest Reset Date shall equal (a)(i) the
rate for the relevant Prime Rate Interest Determination Date set forth in
H.15(519) under the heading "Bank Prime Loan", or (ii) if such rate is not
published before 3:00 P.M., New York City time, on the relevant Calculation
Date, then the arithmetic mean of the rates of interest publicly announced
by each bank that appears on the display designated as page "USPRIME1" on
the Reuters Monitor Money Rates Service (or such other page as may replace
the USPRIME1 page on that services for the purpose of displaying prime
rates or base lending rates of major United States banks) ("Reuters Screen
USPRIME1 Page") as such bank's prime rate or base lending rate as in effect
for such Prime Rate Interest Determination Date as quoted on the Reuters
Screen USPRIME1 Page on such Prime Rate Interest Determination Date or (b)
if fewer than four such rates appear on the Reuters Screen USPRIME1 Page on
such Prime Rate Interest Determination Date, the arithmetic mean of the
prime rates or base lending rates (quoted on the basis of the actual number
of days in the year divided by a 360-day year) as of the close of business
on such Prime Rate Interest Determination Date by three major banks in The
City of New
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<PAGE>
York selected by the Calculation Agent, in any of the above cases (a) or
(b) as adjusted (x) by the addition or subtraction of the Spread, if any,
specified herein, and then (y) by the multiplication by the Spread
Multiplier, if any, specified herein; provided, however, that, if fewer
than three banks selected as provided above by the Calculation Agent are
quoting as mentioned in this sentence, the interest rate hereon for such
Interest Reset Date will be the interest rate hereon in effect on such
Interest Determination Date (or in the case of the first Interest Reset
Date, the Initial Interest Rate).
LIBOR. If the Interest Rate Basis of this Security is LIBOR, the interest
rate hereon for any Interest Reset Date shall be determined in accordance
with the following provisions:
(a) On the relevant LIBOR Interest Determination Date, the interest rate
will be determined on the basis of the arithmetic mean of the offered rates
for deposits of not less than U.S. $1,000,000 having the Index Maturity
specified herein, commencing on the second Market Day immediately following
such LIBOR Interest Determination Date, that appear on the display
designated as page "LIBO" on the Reuter Monitor Money Rates Service (or
such other page as may replace the LIBO page on that service for the
purpose of displaying London interbank offered rates of major banks)
("Reuters Screen LIBO Page") as of 11:00 A.M., London time, on such LIBOR
Interest Determination Date, if at least two such offered rates appear on
the Reuters Screen LIBO Page, adjusted (x) by the addition or subtraction
of the Spread, if any, specified herein, and then (y) by the multiplication
by the Spread Multiplier, if any, specified herein. If fewer than two
offered rates appear, the interest rate hereon for such LIBOR Interest
Reset Date will be determined as described in (b) below.
(b) For a LIBOR Interest Determination Date on which fewer than two offered
rates for the Index Maturity specified herein appear on the Reuters Screen
LIBO Page as described in (a) above, the interest rate hereon will be
determined on the basis of the rates at approximately 11:00 A.M., London
time, on such LIBOR Interest Determination Date at which deposits in U.S.
dollars for the period of the Index Maturity
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<PAGE>
specified herein are offered to prime banks in the London interbank market
by four major banks in the London interbank market selected by the
Calculation Agent commencing on the second Market Day immediately
following such LIBOR Interest Determination Date and in a principal amount
equal to an amount of not less than U.S. $1,000,000 that in the
Calculation Agent's judgment is representative for a single transaction in
such market at such time (a "Representative Amount"). The Calculation
Agent will request the principal London office of each of such banks to
provide a quotation of its rate. If at least two such quotations are
provided, the interest rate hereon with respect to such Interest Reset
Date will be the arithmetic mean of such quotations, as adjusted (x) by
the addition or subtraction of the Spread, if any, specified herein, and
then (y) by the multiplication by the Spread multiplier, if any, specified
herein. If fewer than two quotations are provided, the interest rate
hereon for such Interest Reset Date will be the arithmetic mean of the
rates quoted at approximately 11:00 A.M., New York City time, on such
LIBOR Interest Determination Date by three major banks in The City of New
York, selected by the Calculation Agent, for loans in U.S. dollars to
leading European banks having the Index Maturity specified herein
commencing on the Interest Reset Date and in a Representative Amount, as
adjusted (x) by the addition or subtraction of the Spread, if any,
specified herein, and then (y) by the multiplication by the Spread
Multiplier, if any, specified herein; provided, however, that, if fewer
than three banks selected as provided above by the Calculation Agent are
quoting as mentioned in this sentence, the interest rate hereon for such
Interest Reset Date will be the interest rate hereon in effect on such
LIBOR Interest Determination Date (or, in the case of the first Interest
Reset Date, the Initial Interest Rate).
Treasury Rate. If the Interest Rate Basis of this Security is the Treasury
Rate, the interest rate hereon for any Interest Reset Date shall equal (a)
the rate for the auction on the relevant Treasury Interest Determination
Date of direct obligations of the United States ("Treasury Bills") having
the Index Maturity specified herein, (i) as such rate is published in
H.15(519) under the heading "U.S. Government Securities/Treasury
Bills/Auction Average (Investment)" or (ii) if such rate is not so
published by 9:00 A.M., New York
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<PAGE>
City time, on the relevant Calculation Date, then the auction average rate
(expressed as a bond equivalent, on the basis of a year of 365 or 366
days, as applicable, and applied on a daily basis) for such auction as
otherwise announced by the United States Department of the Treasury or
(b) if the results of such auction of Treasury bills having the Index
Maturity specified herein are not published or reported as provided above
by 3:00 P.M., New York City time, on such Calculation Date or if no such
auction is held during such week, then the rate set forth in H.15(519) for
the relevant Treasury Interest Determination Date for the Index Maturity
specified herein under the heading "U.S. Government Securities/Treasury
Bills/Secondary Market" or (c) if such rate is not so published by
3:00 p.m., New York City time, on the relevant Calculation Date, then the
yield to maturity (expressed as a bond equivalent, on the basis of a year
of 365 or 366 days, as applicable, and applied on a daily basis) of the
arithmetic mean of the secondary market bid rates as of approximately
3:30 P.M., New York City time, on such Treasury Interest Determination
Date, of three primary United States government securities dealers in The
City of New York selected by the Calculation Agent for the issue of
Treasury Bills with a remaining maturity closest to the Index Maturity
specified herein, in any of the above cases (a), (b) or (c) as adjusted
(x) by the addition or subtraction of the Spread, if any, specified
herein, and then (y) by the multiplication by the Spread Multiplier, if
any, specified herein; provided, however, that, if fewer than three
dealers selected as provided above by the Calculation Agent are quoting as
mentioned in this sentence, the interest rate hereon for such Interest
Reset Date will be the interest rate hereon in effect on such Treasury
Interest Determination Date (or, in the case of the first Interest Reset
Date, the Initial Interest Rate).
CD Rate. If the Interest Rate Basis of this Security is the CD Rate, the
interest rate hereon for any Interest Reset Date shall equal (a) the rate
for the relevant CD Rate Interest Determination Date for negotiable
certificates of deposit having the Index Maturity specified herein (i) as
published in H.15(519) under the heading "CDs (Secondary Market)" or (ii)
if such rate is not published before 9:00 A.M., New York City time, on the
relevant Calculation Date, then the rate on
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<PAGE>
such CD Rate Interest Determination Date for negotiable certificates of
deposit having the Index Maturity specified herein as published in
Composite Quotations under the heading "Certificates of Deposit", or
(b) if by 3:00 P.M., New York City time, on such Calculation Date such
rate is not published in either H.15(519) or Composite Quotations, the
arithmetic mean of the secondary market offered rates, as of 10:00 A.M.,
New York City time, on such CD Rate Interest Determination Date, of three
leading nonbank dealers of negotiable U.S. dollar certificates of deposit
in The City of New York selected by the Calculation Agent for negotiable
certificates of deposit of major United States money center banks with a
remaining maturity closest to the Index Maturity specified herein in a
denomination of U.S. $5,000,000, in any of the above cases (a) or (b) as
adjusted (x) by the addition or subtraction of the Spread, if any,
specified herein, and then (y) by the multiplication by the spread
multiplier, if any, specified herein; provided, however, that, if fewer
than three dealers selected as provided above by the Calculation Agent
are quoting as mentioned in this sentence, the interest rate hereon for
such Interest Reset Date will be the interest rate hereon in effect on
such CD Rate Interest Determination Date (or, in the case of the first
Interest Reset Date, the Initial Interest Rate).
Federal Funds Rate. If the Interest Rate Basis of this security is the
Federal Funds Rate, the interest rate hereon for any Interest Reset Date
shall equal (a) the rate on the relevant Federal Funds Interest
Determination Date for Federal Funds (i) as published in H.15(519) under
the heading "Federal Funds (Effective)" or (ii) if such rate is not
published before 9:00 a.m., New York City time, on the relevant Calculation
Date, then the rate on such Federal Funds Interest Determination Date as
published in Composite Quotations under the heading "Federal
Funds/Effective Rate" or (b) if by 3:00 p.m., New York City time, on such
Calculation Date such rate is not published in either H.15(519) or
Composite Quotations, the arithmetic mean of the rates, as of 9:00 a.m.,
New York City time, on such Federal Funds Interest Determination Date, for
the last transaction in overnight Federal Funds arranged by three leading
brokers of Federal Funds transactions in The City of New York selected by
the Calculation Agent, in any of the above cases
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<PAGE>
(a) or (b) as adjusted (x) by the addition or subtraction of the Spread,
if any, specified herein, and then (y) by the multiplication by the Spread
Multiplier, if any, specified herein; provided, however, that, if fewer
than three brokers selected as provided above by the Calculation Agent are
quoting as mentioned in this sentence, the interest rate hereon for such
Interest Reset Date will be the interest rate hereon in effect on such
Federal Funds Interest Determination Date (or, in the case of the first
Interest Reset Date, the Initial Interest Rate).
Notwithstanding the foregoing, the interest rate hereon shall not be greater
than the Maximum Interest Rate, if any, or less than the Minimum Interest Rate,
if any, specified herein. In addition, the interest rate hereon will in no event
be higher than the maximum rate permitted by applicable law.
The Company will at all times appoint and maintain a banking institution
that is not an Affiliate of the Company as Calculation Agent hereunder. The
Company has appointed State Street Bank and Trust Company as such Calculation
Agent and will give prompt written notice to the Trustee of any change in such
appointment. The Company will cause the Calculation Agent to calculate the
interest rate on this Security for any Interest Reset Date in accordance with
the foregoing on or before the Calculation Date pertaining to the related
Interest Determination Date. Except as otherwise provided herein, all
percentages resulting from any calculations will be rounded upwards, if
necessary, to the next higher one hundred-thousandth of a percentage point
(e.g., 9.876541% (or .09876541) being rounded to 9.87655% (or .0987655)), and
all U.S. dollar amounts used in or resulting from such calculations will be
rounded to the nearest cent (with one-half cent being rounded upwards). The
Calculation Agent's determination of any interest rate will be final and binding
in the absence of manifest error.
Upon the request of the Holder of this Security, the Company will cause the
Calculation Agent to provide to such Holder the interest rate hereon then in
effect and, if determined, the interest rate hereon which will become effective
on the next Interest Reset Date.
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<PAGE>
The Interest Determination Date pertaining to an Interest Reset Date if the
rate of interest hereon shall be determined in accordance with the provisions
under the headings above entitled "Commercial Paper Rate" (the "Commercial Paper
Interest Determination Date"), "Prime Rate" (the "Prime Rate Interest
Determination Date"), "LIBOR" (the "LIBOR Interest Determination Date"), "CD
Rate" (the "CD Rate Interest Determination Date") and "Federal Funds Rate" (the
"Federal Funds Interest Determination Date") will be the second Market Day
preceding such Interest Reset Date. The Interest Determination Date pertaining
to an Interest Reset Date if the rate of interest hereon shall be determined in
accordance with the provisions under the heading above entitled "Treasury Rate"
(the "Treasury Interest Determination Date") will be the day of the week in
which such Interest Reset Date falls on which Treasury bills would normally be
auctioned. If, as the result of a legal holiday, an auction is held on the
preceding Friday, such Friday will be the Treasury Interest Determination Date
pertaining to the Interest Reset Date occurring in the next succeeding week. If
an auction date shall fall on any Interest Reset Date for a Treasury Rate
Security, then such Interest Reset Date shall instead be the first Market Day
immediately following such auction date.
The Calculation Date pertaining to any LIBOR Interest Determination Date
for any Security shall be such LIBOR Interest Determination Date, and the
Calculation Date pertaining to any other Interest Determination Date for any
Security shall be the tenth day after such Interest Determination Date or, if
any such day is not a Market Day for such Security, the next succeeding such
Market Day.
Payments of interest hereon with respect to any Interest Payment date will
include interest accrued to but excluding such Interest Payment Date; provided,
however, that, if the Interest Reset Period with respect to this Security is
weekly, the interest payable on any Interest Payment Date, other than interest
payable on the date on which principal is payable, will include interest accrued
to but excluding the day following the next preceding Regular Record Date.
Accrued interest hereon from the Original Issue Date or from the last date
to which interest has been paid or duly provided for is calculated by
multiplying the principal amount of this Security
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<PAGE>
by an accrued interest factor. Such accrued interest factor is computed by
adding the interest factor calculated for each day from the Original Issue
Date, or from the last date to which interest has been paid or duly provided
for, but excluding the date for which accrued interest is being calculated. The
interest factor (expressed as a decimal) for each such day is computed by
dividing the interest rate (expressed as a decimal) applicable to such day by
360 or, if the Interest Rate Basis for this Security is the Treasury Rate, by
the actual number of days in the year.
In any case where any Interest Payment Date or the Stated Maturity of the
principal of this Security shall not be a Business Day, then (notwithstanding
any other provision hereof or of the Indenture) the payment of interest and/or
of principal need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on such
Interest Payment Date or at the Stated Maturity, and no interest shall accrue
with respect to such payment for the period from and after such Interest Payment
Date or Stated Maturity to such next succeeding Business Day.
If an Event of Default with respect to the Securities of this series shall
occur and be continuing, the principal of the securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the Guarantor and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company, the
Guarantor and the Trustee with the consent of the Holders of 66 2/3% in
principal amount of all Outstanding Securities at the time and of a majority in
principal amount of the Securities at the time Outstanding of each series to be
affected. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of all the Securities and the
Securities of each series at the time Outstanding, on behalf of the Holders of
all Securities of such series, to waive compliance by the Company, the
Guarantor, or both with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future
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<PAGE>
Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefore or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium (if any) and
interest on this Security at the times, place and rate (except as provided for
in such Security), and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations (including,
in the case of any Global Security, certain additional limitations) therein set
forth, the transfer of this Security is registrable in the Security Register,
upon surrender of such Securities for registration of transfer at the office or
agency of the Company in any place where the principal of, premium (if any) and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered form without
coupons in denominations of $100,000 and any integral multiple of $1,000 in
excess thereof. As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the
Company, the Guarantor or the Trustee and any agent
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of the Company, the Guarantor or the Trustee may treat the Person in whose name
this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and neither the Company, the Guarantor, the
Trustee nor any such Agent shall be affected by notice to the contrary.
All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
This Security shall be governed by and construed in accordance with the
laws of the State of New York.
Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.
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<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
XTRA, INC.
Dated: By:_________________________
Title: Vice President and
Chief Financial
Officer
Attest:
_____________________________
Title: Assistant Clerk
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series
designated in the within-mentioned Indenture
and referred to therein.
STATE STREET BANK AND TRUST COMPANY
as Trustee
By: ________________________
Authorized Officer
Guarantee
---------
For value received, XTRA Corporation, a corporation organized under the
laws of the State of Delaware (herein called the
-18-
<PAGE>
"Guarantor," which term includes any successor corporation under the Indenture
referred to in the Security upon which this Guarantee is endorsed), hereby
unconditionally guarantees to the Holder of the Security upon which this
Guarantee is endorsed and to the Trustee on behalf of each such Holder the due
and punctual payment of the principal of, premium, if any, and interest on such
Security when and as the same shall become due and payable, whether at the
Stated Maturity, by declaration of acceleration, call for redemption or
otherwise, according to the terms thereof and of the Indenture referred to
therein. In case of the failure of XTRA, Inc., a corporation organized under
the laws of the State of Maine (herein called the "Company," which term
includes any successor corporation under such Indenture), punctually to make
any such payment of principal, premium (if any) or interest, the Guarantor
hereby agrees to cause any such payment to be made punctually when and as the
same shall become due and payable, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise, and as if such
payment were made by the Company.
The Guarantor hereby agrees that its obligations hereunder shall be as if
it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of, and shall be unaffected by, any invalidity,
irregularity or unenforceability of such Security or such Indenture, any failure
to enforce the provisions of such Security or such Indenture, or any waiver,
modification or indulgence granted to the Company with respect thereto, by the
Holder of such Security or the Trustee or any other circumstance which may
otherwise constitute a legal or equitable discharge of a surety or guarantor;
provided, however, that, notwithstanding the foregoing, no such waiver,
modification or indulgence shall, without the consent of the Guarantor, increase
the principal amount of such Security or change the redemption terms thereof or
alter the Stated Maturity thereof. The Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
merger or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest or notice with respect to such Security or the
indebtedness evidenced thereby and all demands whatsoever, and covenants that
this Guarantee will not be discharged except by strict and complete performance
of the obligations contained in such Security and this Guarantee.
-19-
<PAGE>
The Guarantor shall be subrogated to all rights of the Holder of such
Security and the Trustee against the Company in respect of any amounts paid to
such Holder by the Guarantor pursuant to the provisions of this Guarantee;
provided, however, that the Guarantor shall not be entitled to enforce, or to
receive any payments arising out of or based upon, such right of subrogation
until the principal of, premium (if any), and interest on all Securities issued
under such Indenture shall have been paid in full.
No reference herein to such Indenture and no provision of this Guarantee or
of such Indenture shall alter or impair the guarantee of the Guarantor, which is
absolute and unconditional, of the due and punctual payment of principal,
premium (if any), and interest on the Security upon which this Guarantee is
endorsed.
This Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication of the Security upon which this Guarantee is
endorsed shall have been manually executed by or on behalf of the Trustee under
such Indenture.
All terms used in this Guarantee which are defined in such Indenture shall
have the meanings assigned to them in such Indenture.
This Guarantee shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be governed by and construed in
accordance with the laws of the State of New York.
Executed and dated the date on the face hereof.
XTRA CORPORATION
By: _________________________
Title: Vice President and
Chief Financial
Officer
-20-
<PAGE>
Attest:
_________________________
Secretary
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<PAGE>
The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - .... Custodian.....
(Cust) (Minor)
Uniform Gifts to
Minors Act
TEN ENT - as tenants by the entireties .................
(State)
JT TEN - as joint tenants with right of
survivorship and not as tenants
in common
Additional abbreviations may also be used though not in the above list.
_______________________________________
FOR VALUE RECEIVED I or we sell, assign and transfer to
INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE:
_______________________________
_______________________________________________________________________
(Print or type name, address and zip code of assignee)
_______________________________________________________________________
this Security and all rights hereunder and irrevocably appoint _______________
attorney to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
Dated: ________________________ Signed: ______________________________
Signature(s) Guaranteed by: (Sign exactly as name appears
on the other side of this Note)
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<PAGE>
NOTICE: The signature(s) to this assignment must correspond with the name as it
appears upon the face of the within Note in every particular, without alteration
or enlargement or any change whatever.
<PAGE>
Exhibit 5
[LETTERHEAD]
Ropes & Gray
One International Place
Boston, Ma. 02110
May 16, 1997
XTRA Corporation
XTRA, Inc.
60 State Street
Boston, Massachusetts 02108
Re: XTRA Corporation and XTRA, Inc. -
$604,000,000 Aggregate Amount of Securities
Ladies and Gentlemen:
You have asked our opinion concerning the proposed issue by XTRA
Corporation (the "Company") of (i) shares of its preferred stock, no par
value (the "New Preferred Stock"), in one or more series and/or (ii) shares
of its common stock, par value $0.50 per share (the "New Common Stock"), and
the proposed issue by XTRA, Inc. ("XTRA, Inc.) of its debt securities (the
"New Debt Securities"), which may be either senior debt securities ("Senior
Securities") or subordinated debentures, notes and/or other evidences of
indebtedness, in one or more series, to be unconditionally guaranteed on a
senior or subordinated basis, as the case may be, as to the payment of
principal of, premium, if any, and interest on the New Debt Securities by the
Company (the "Guarantees"), which Senior Securities are to be issued under an
indenture dated as of August 15, 1994 (the "Original Senior Indenture") among
XTRA, Inc., the Company, as guarantor, and the First National Bank of Boston,
as trustee, as supplemented by the First Supplemental Indenture dated as of
September 30, 1994 among XTRA, Inc., the Company, as guarantor, XTRA
Missouri, Inc. as guarantor, and the Bank of Boston (the "First Supplemental
Indenture"), and as supplemented by the Second Supplemental Indenture among
XTRA, Inc., the Company, as guarantor, and State Street Bank and Trust Company,
as trustee (the "Second Supplemental Indenture," and together with the First
Supplemental Indenture and the Original Senior Indenture, the "Senior
Indenture") and which Subordinated Securities are to be issued under an
indenture (the "Subordinated Indenture') among XTRA, Inc., the Company, as
guarantor, and a trustee to be designated (the "Subordinated Trustee")
(the New Preferred Stock, the New Common Stock, the Guarantees and the New Debt
Securities are referred to herein collectively as the "Securities"). On
October 2, 1995, State Street Bank and Trust Company succeeded to all or
substantially all of the corporate trust business of the Bank of
<PAGE>
XTRA Corporation
XTRA, Inc. 2 May 16, 1997
Boston, thereby becoming the successor trustee pursuant to the terns of the
Senior Indenture (hereinafter the "Senior Trustee" and, together with the
Subordinated Trustee, the "Trustees"). The Securities are to be issued at an
aggregate initial offering price not to exceed $604,000,000.
We have acted as counsel for the Company and XTRA, Inc. in connection
with the proposed issue and sale of the Securities. We are familiar with the
proceedings taken by the Company and XTRA, Inc. in respect thereof and have
examined originals or certified or attested copies of such certificates,
records and documents as we have deemed necessary for the purposes of this
opinion.
Basing our opinion on the foregoing, we are of the opinion that:
(1) when Post-Effective Admendment No. 1, as amended, to the Registration
Statement (No. 33-65293) (the "Registration Statement") relating to the
Securities filed with the Securities and Exchange Commission under the
Securities Act of 1933, as amended, has been declared effective, no further
authorization, consent or approval by any regulatory authority will be
required for the valid issuance and sale of the Securities (except under the
so-called "Blue Sky" or securities laws of the several states, as to the
applicability of which we express no opinion);
(2) when the Board of Directors of the Company and/or XTRA, Inc. or
committees designated thereby, have determined the price and other terms and
conditions relating to the issue and sale of the Securities, the Securities will
have been duly authorized by the Company and XTRA, Inc.;
(3) upon the execution and filing with the Trustees of the proper papers,
the Senior Securities and the related Guarantees and the Subordinated Securities
and the related Guarantees will be issuable under the terms of their respective
Indentures;
(4) upon the execution, certification and delivery of the Senior
Securities and the related Guarantees in accordance with the corporate
authorization referred to above and in accordance with the Senior Indenture, the
Senior Securities will be valid and legally binding obligations of XTRA, Inc.,
and the related Guarantees will be the valid and legally binding obligations of
the Company, and the Senior Securities and related Guarantees will be entitled
to the benefits provided by the Senior Indenture together with any other series
of Senior Securities and Guarantees thereof and which may hereafter be issued
thereunder pursuant to the terms thereof; except that enforcement of the rights
and remedies created thereby is subject to bankruptcy, reorganization,
insolvency or similar laws affecting creditors' rights generally, as may from
time to time be in effect, and by the availability of specific performance or of
injunctive relief, which is subject to the discretion of the court before which
any proceeding may be brought;
(5) upon the execution, certification and delivery of the Subordinated
Securities and the related Guarantees in accordance with the corporate
authorization referred to above and in
<PAGE>
XTRA Corporation
XTRA, Inc. 3 May 16, 1997
accordance with the Subordinated Indenture, the Subordinated Securities will
be valid and legally binding obligations of XTRA, Inc. and the related
Guarantees will be the valid and legally binding obligations of the Company,
and the Subordinated Securities and related Guarantees will be entitled to
the benefits provided by the Subordinated Indenture together with any other
series of Subordinated Securities and Guarantees thereof and which may
hereafter be issued thereunder pursuant to the terms thereof; except that
enforcement of the rights and remedies created thereby is subject to
bankruptcy, reorganization, insolvency of similar laws affecting creditors'
rights generally, as may from time to time be in effect, and by the
availability of specific performance or of injunctive relief, which is
subject to the discretion of the court before which any proceeding may be
brought;
(6) upon the issuance by the Company of the New Common Stock against
payment of the agreed consideration in accordance with the corporate
authorization referred to above, the New Common Stock will be validly issued,
fully paid and nonassessable; and
(7) upon the issuance by the Company of the New Preferred Stock against
payment of the agreed consideration in accordance with the corporate
authorization referred to above, the New Preferred Stock will be validly
issued, fully paid and nonassessable.
We understand that this opinion is to be used in connection with the
Company's and XTRA, Inc.'s joint Registration Statement relating to the
Securities to be filed under the Securities Act of 1933, as amended. We
consent to the filing of this opinion with and as part of said Registration
Statement and the use of our names therein and in the related Prospectus
under the caption "Validity of Securities."
Very truly yours,
/s/ Ropes & Gray
----------------------------
Ropes & Gray
<PAGE>
Exhibit 12.1
XTRA CORPORATION
STATEMENT OF THE CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars)
<TABLE>
<CAPTION>
FISCAL YEAR ENDED SEPTEMBER 30,
---------------------------------------------------- Six Months Ended
1992 1993 1994 1995 1996 March 31, 1997
-------- --------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS
Income before provision for income
taxes............................. $44.3 $ 72.4 $ 98.4 $ 98.0 $ 69.1 $ 34.1
Add: Fixed charges.................. 25.5 44.0 36.1 41.8 66.2 31.2
------ --------- --------- --------- --------- -------
$69.8 $ 116.4 $ 134.5 $ 139.8 $ 135.3 $ 65.3
------ --------- --------- --------- --------- -------
------ --------- --------- --------- --------- -------
FIXED CHARGES
Interest expense.................... $21.1 $ 38.8 $ 33.9 $ 41.4 $ 66.0 $ 31.1
Interest portion of rent expense.... 4.4 5.2 2.2 0.4 0.2 0.1
------ --------- --------- --------- --------- -------
$25.5 $ 44.0 $ 36.1 $ 41.8 $ 66.2 $ 31.2
------ --------- --------- --------- --------- -------
------ --------- --------- --------- --------- -------
Ratio of earnings to fixed
charges........................... 2.7x 2.6x 3.7x 3.3x 2.0x 2.1x
------ --------- --------- --------- --------- -------
------ --------- --------- --------- --------- -------
</TABLE>
- ------------------------
Note: For purposes of computing the ratio of earnings to fixed charges,
"earnings" represents income from operations before taxes plus fixed
charges. "Fixed charges" for operations consist of interest on
indebtedness and the portion of rental expense which represents interest.
<PAGE>
Exhibit 12.2
XTRA CORPORATION
STATEMENT OF THE CALCULATION OF RATIO OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Millions of dollars)
<TABLE>
<CAPTION>
FISCAL YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended
1992 1993 1994* 1995* 1996* March 31, 1997*
------------ --------- ----------- ----------- ----------- ------------------
EARNINGS
Income before provision for income
taxes.................................. $44.3 $ 72.4 $ -- $ -- $ -- $ --
Add: Fixed charges, excluding such
charges not deducted in the
determination of pre-tax income ....... 25.5 44.0 -- -- -- --
--------- -------- --------- ------- ------------ -----------------
$69.8 $ 116.4 $ 0.0 $ 0.0 $ 0.0 $ 0.0
--------- -------- --------- ------- ------------ -----------------
--------- -------- --------- ------- ------------ -----------------
FIXED CHARGES
Interest expense....................... $21.1 $ 38.8 $ -- $ -- $ -- $ --
Interest portion of rent expense....... 4.4 5.2 -- -- -- --
Pretax earnings required to cover
preferred dividend requirements...... 7.9 8.9 -- -- -- --
--------- -------- --------- ------- ------------ ----------------
$33.4 $ 52.9 $ 0.0 $ 0.0 $ 0.0 $ 0.0
--------- -------- --------- ------- ------------ ----------------
--------- -------- --------- ------- ------------ ----------------
Ratio of earnings to combined fixed
charges and Preferred Stock
dividends............................ 2.1x 2.2x -- -- -- --
--------- -------- --------- ------- ------------ ----------------
--------- -------- --------- ------- ------------ ----------------
</TABLE>
Note: For purposes of computing the ratio of earnings to combined fixed charges
and preferred stock dividends, "earnings" represent income from operations
before taxes plus fixed charges. "Fixed charges" for operations consist of
interest on indebtedness and the portion of rental expense which represents
interest and the amount of pre-tax income necessary to cover Preferred Stock
dividends.
* No shares of preferred stock were outstanding during the indicated period.
<PAGE>
Exhibit 12.3
XTRA, INC.
STATEMENT OF THE CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars)
<TABLE>
<CAPTION>
Six Months Ended
FISCAL YEAR ENDED SEPTEMBER 30, March 31, 1997
-------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C>
1992 1993 1994 1995 1996
-------- --------- -------- --------- ---------
EARNINGS
Income before provision for income
taxes.............................. $44.3 $ 72.4 $ 98.4 $ 97.9 $ 68.9 $34.1
Add: Fixed charges ................. 25.5 44.0 36.1 41.8 66.2 31.2
-------- --------- -------- --------- --------- -------
$69.8 $116.4 $134.5 $139.7 $135.1 $65.3
-------- --------- -------- --------- --------- -------
-------- --------- -------- --------- --------- -------
FIXED CHARGES
Interest expense.................... $21.1 $ 38.8 $ 33.9 $ 41.4 $ 66.0 $31.1
Interest portion of rent expense.... 4.4 5.2 2.2 0.4 0.2 0.1
-------- --------- -------- --------- --------- -------
$25.5 $ 44.0 $ 36.1 $ 41.8 $ 66.2 $31.2
-------- --------- -------- --------- --------- -------
-------- --------- -------- --------- --------- -------
Ratio of earnings to fixed charges... 2.7x 2.6x 3.7x 3.3x 2.0x 2.1x
-------- --------- --------- --------- --------- -------
-------- --------- --------- --------- --------- -------
</TABLE>
Note: For purposes of computing the ratio of earnings to fixed charges,
"earnings" represents income from operations before taxes plus fixed
charges. "Fixed charges" for operations consist of interest on
indebtedness and the portion of rental expense which represents
interest.
<PAGE>
Exhibit 23.1
Consent of Independent Public Accountants
As independent public accountants, we hereby consent to the incorporation by
reference in this Amendment to Post-Effective Amendment No. 1 to registration
statement of our reports dated November 13, 1996 included and incorporated by
reference in XTRA Corporation's Form 10-K for the year ended September 30, 1996
and to all references to our Firm included in this Amendment to Post-Effective
Amendment No. 1 to registration statement.
Boston, Massachusetts
May 16, 1997 Arthur Andersen L.L.P.
