Interpool upsizes rights offering of convertibles

New York, Dec. 23 - Interpool, Inc. said it upsized its rights offering of 9.25% convertible redeemable subordinated debentures to $37.8 million after receiving subscriptions for $31.1 million principal amount of the securities by the Dec. 20 expiration date.

The Princeton, N.J. transportation equipment supplier said it expects to close the offering on Dec. 27 but will accept subscriptions from third-party standby purchasers for a further $6.7 million of the convertibles until Jan. 21.

"We are delighted with the successful results of our offering. We had substantial interest from both our existing stockholders who exercised subscription rights and investors new to Interpool," Martin Tuchman, chairman and chief executive officer of Interpool, said in a news release.

Under the offer, stockholders had the right to buy the new securities at $25 at the rate of one convertible per 25 shares of common stock.

The securities convert at the greater of $25 and 135% of the average price of Interpool's common stock for five trading days. They will be callable at par from three years onwards and mature after 20 years.

Proceeds will be used for general corporate purposes.

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