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
Date of Event: May 14, 1996
Date of Report: May 15, 1996
PLM INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
1-9670 94-3041257
(Commission File Number) (I.R.S. Employer Identification No.)
One Market
Steuart Street Tower, Suite 900
San Francisco, California 94105-1301
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 974-1399
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ITEM 5. Other Events.
PLM International, Inc. (the "Company") announced that its Board of Directors
has approved a strategic plan for the Company to halt the syndication of
equipment leasing programs and to focus on expanding its trailer leasing,
commercial and industrial leasing, and management operations.
A copy of the press release is attached as an exhibit to this Form.
Attachments:
Exhibit 1: Press release, dated May 14, 1996.
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EXHIBIT 1
Contact: Janet M. Turner
Vice President, Investor Relations
(415) 905 - 7214
PLM INTERNATIONAL TO HALT SYNDICATION AND
EXPAND ITS TRAILER LEASING BUSINESS
FOR IMMEDIATE RELEASE
San Francisco, California, May 14, 1996--San Francisco-based PLM International,
Inc. (ASE:PLM) today announced that its Board of Directors has approved a
strategic plan for the Company to halt the syndication of equipment leasing
programs and to focus on expanding its trailer leasing, finance leasing, and
management operations.
Under its new strategic direction, PLM International, for now, will not sponsor
any new investment programs effective with the close of its current offering,
Professional Lease Management Income Fund I, on May 13, 1996. The principal
impact on PLM International of halting its syndication effort will be the change
in the composition of the Company's capital sources to a mix which reflects the
debt and equity sources more typically utilized by public companies today. Given
PLM International's major improvements to its financial position over the past
three years, a shift to more traditional funding sources is expected to be a
smooth and cost-efficient transition. PLM International continues to be a
leading equipment leasing and management company, operating an owned and managed
portfolio of $1.3 billion of equipment, at original cost.
Going forward, the Company will concentrate on building its operations in three
distinct but complementary areas: lease origination and management of a wide
range of commercial and industrial equipment to investment-grade companies
through its American Finance Group, Inc. subsidiary; lease origination and
management of transportation equipment on behalf of its existing investor
programs; and expansion of its current trailer leasing and management operations
through its PLM Rental, Inc. subsidiary.
PLM International President and Chief Executive Officer, Robert N. Tidball said,
"For the past several years, we have been increasingly concerned over the
continued decline in the equity raised within the partnership syndication
industry. In response to this, early last year we introduced what we believe is
the best equipment leasing direct investment product in the market: Professional
Lease Management Income Fund I. Although the broad appeal of this true "no load"
fund produced higher sales in 1995, syndication results still fell below our
expectations. We have determined that current and projected equity sales will
not reach the volumes necessary to make this type of fund attractive to the
Company.
"For these reasons, we have decided to redirect the Company's energies and
resources to equipment leasing and management activities which hold greater
long-term potential for volume and profitability growth, and building
shareholder value. In particular, we intend to build a greater presence in the
trailer leasing and management industry. PLM Rental is currently the largest
short-term, on-demand refrigerated trailer rental operation in North America and
we believe there are additional new opportunities in the refrigerated and other
trailer markets which are a natural fit with our core competencies in equipment
leasing. With our strong financial position, proven leasing and management
expertise, and extensive industry contacts, we believe PLM International is in
an excellent position to successfully capitalize on opportunities in these
markets."
In announcing the changes to its syndication business, Tidball said that
investors in Professional Lease Management Income Fund I as well as all other
existing PLM investment programs, including the PLM Equipment Growth Funds, will
not be affected by the Board's decision. "Since we will continue to act as the
Manager and General Partner of these programs, we remain committed, in our
fiduciary role, to effectively managing these programs and providing our
investors with a high level of service."
PLM International is a diversified equipment leasing and management company
providing services to transportation, industrial, and commercial companies. With
a combined owned and managed portfolio of approximately $1.3 billion in
equipment, PLM International operates one of the 25 largest asset leasing pools
in the United States today. The Company specializes in creating equipment
leasing solutions for domestic and international customers.
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SIGNATURE
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 hereunto duly authorized.
PLM INTERNATIONAL, INC.
(Registrant)
DATE: May 15, 1996 By: /s/ Stephen Peary
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Stephen Peary
Senior Vice President
