SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report (Date of Earliest Event Reported) August 28, 1997
GATX CORPORATION
(Exact Name of Registrant as Specified in its Charter)
New York 1-2328 36-1124040
(State or other jurisdiction (Commission file number) (I.R.S. employer
of incorporation) identification number)
500 West Monroe Street, Chicago, Illinois 60661-3676
(Address of principal executive offices)
Registrant's telephone number, including area code (312) 621-6200
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GATX Capital Corporation, an indirect wholly owned subsidiary of the Company, is
filing a Current Report on Form 8-K. The following press release was issued on
August 21, 1997:
GATX Capital today entered into agreements to invest in a $1.2 billion
portfolio of leased assets currently owned by Pitney Bowes Financial Services.
GATX Capital is the financial services unit of GATX Corporation (NYSE:GMT).
Under the terms of the agreements, GATX Capital's total cash investment
will be approximately $460 million. This investment includes a direct purchase
of assets from Pitney Bowes, as well as an equity investment in a limited
liability company to be owned jointly by GATX Capital and Pitney Bowes. This
limited liability company, with almost $1 billion in assets, will be capitalized
with nearly $200 million of equity from each of the partners, as well as
approximately $600 million of nonrecourse debt.
According to Joseph C. Lane, president and CEO of GATX Capital, "This
transaction with Pitney Bowes will represent the largest single investment in
our history. GATX Capital's investment in these high quality assets which are on
lease primarily to investment grade credits, provides us with additional
portfolio diversification, attractive risk-adjusted returns, and a growing
investment base. In addition, this transaction demonstrates GATX Capital's
continued strategy of growth through joint ventures and further evidences our
success in lease portfolio acquisitions. By combining each company's respective
strengths and core business activities, this transaction allows both GATX and
Pitney Bowes to maximize their companies' shareholder value."
Pitney Bowes' chairman and CEO, Michael J. Critelli said, "The signing
of the GATX Capital agreement unveils our latest actions to maximize the return
on our stockholders' investment in Pitney Bowes. The transaction with GATX
Capital will maximize the cash return on the assets, while also significantly
reducing our large-ticket external finance portfolio and related debt."
GATX Capital, a wholly-owned subsidiary of GATX Corporation, is a
diversified international financial services company which provides asset-based
financing for transportation, industrial and information technology equipment.
GATX Capital's owned and managed portfolios consist of assets whose original
cost exceeds $10 billion. GATX Corporation provides service-enhanced assets
primarily used to help its customers transport, store or distribute their
products and information.
Pitney Bowes Financial Services provides leasing and financing services
to help businesses - ranging from small to large - acquire Pitney Bowes and
other mission critical equipment and services while preserving cash flow. Pitney
Bowes Inc. (NYSE:PBI) is a premier provider of products and services that
support preparation and management of documents, packages and other messages in
physical or electronic form.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, duly authorized.
GATX Corporation
August 28, 1997 By: /s/ David M. Edwards
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David M. Edwards
Vice President Finance and
Chief Financial Officer
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