Since its IPO in March, the shares of private equity firm FortressInvestment Group LLC (NYSE: FIG) have plunged from $33 to $18
But, the team is trying to reverse things. In fact, this week Fortress filed an IPO for one of its portfolio holdings: Seacastle.
Basically, the company is one of the largest lessors of intermodal equipment (such as chassis, containers, and containerships). It's an important business because it allows for multiple transportation modes like ships, rail, and trucks.
In fact, according to a report from Clarkson Research, the containerized market should grow at about 10% per year (through 2008). Key drivers include: lower trade barriers, the growth of manufacturing in areas like China and India, and strong global economic activity.
Because of the long-term lease arrangements, the cash flows are fairly predictable. Last year, revenues were about $138.4 million and net income was $3.6 million.
The underwriters include Citigroup Inc. (NYSE: C), Bear Stearns Cos.(NYSE: BSC), Deutsche Bank AG (NYSE: DB), and Merrill Lynch & Co. (NYSE: MER). The proposed ticker is "SC."
You can find the prospectus at the SEC website. Also, if you want to check out more IPO filings, click here.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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