Chicago-based GATX Capital recently increased its $300 million credit to $425 million to support an expanding commercial paper program. Robert Lyons, director of investor relations, said GATX added Salomon Smith Barney as joint lead arranger and bookrunner. "Salomon was chosen based on a longstanding relationship, rather than a formal bidding process," he added.J.P. Morgan Chase leads the loan for the company, which provides asset-based finance across numerous industries.
The credit consists of a $238 million, three-year facility and a $142 million, 364-day revolver. Chase is the administrative agent and Citibank is the syndication agent, with Bank of America, FleetBoston Financial, and Credit Lyonnais as co-documentation agents. German outfits Deutsche Bank and Bayerische Landesbank are co-agents and participants include Bank One and Firstar Bank. Pricing is similar to the expiring loan, which was arranged in 1998, said Lyons, declining to provide figures. According to Capital DATA Loanware, spreads were LIBOR plus 3/4%.
GATX Corporation has another $350 million credit led by Chase for GATX Rail arranged in 1998 and maturing in 2003. GATX Rail leases and services the largest North American tank car fleet. "The two lines of credit are independent because the two companies are separate legal entities," explained Lyons. There is an intention to merge the two legally, and logically the two lines of credit could be rolled into one, he added. Different banks are involved in this credit, Lyons said, noting that there is no set time frame for the move. GATX has several other lines of capital. "We're in the business of financing, that is what we do," said Lyons.