Prospects dim for XTRA merger

ST. LOUIS, Mo. — XTRA Corp., the St. Louis, Mo.-based transportation equipment leasing company, says its planned merger with Wheels MergerCo LLC, a limited liability company, are on hold after several investment firms backing the deal asked to change the financing terms.

Apollo Management IV, L.P. and Interpool Inc., two companies that formed MergerCo, said two firms involved with arranging MergerCo’s part of the merger, Chase Securities and The Chase Manhattan Bank, exercised their rights to change the terms of their commitment due to uncertain global economic conditions. Either party may terminate the deal, announced last June, without breaching the contract if it fails to obtain financing before Nov. 30.

“In light of current circumstances, the prospects are not favorable for obtaining the financing necessary to consummate the merger,” said Interpool in a notice to shareholders. Interpool is one of the world’s largest lessors of cargo containers used in international trade, and is the second largest lessor of intermodal container chassis in the United States.


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