Icahn To Sell American Railcar For Up To $3.364 Bln

(RTTNews) - Billionaire investor Carl Icahn's investment arm, Icahn Enterprises L.P. (IEP) announced that it has agreed to sell wholly owned subsidiary American Railcar Leasing LLC to SMBC Rail Services LLC, a wholly-owned subsidiary of Sumitomo Mitsui Banking Corp, for cash based on an enterprise value of $2.778 billion and a fleet of approximately 29,000 railcars. The initial closing is expected to occur in the second quarter of 2017.

For a period of three years thereafter, Icahn will have an option to sell Sumitomo another 4,800 rail cars for about $586 million at the time of the initial closing, which would bring the total sale price to $3.364 billion.

The sale of the railcar leasing business is subject to customary closing conditions, Icahn Enterprises said. Deutsche Bank AG served as financial adviser to American Railcar Leasing while Thompson Hine acted as legal counsel.