Seacastle: Fortess Holding Is Expected To Go Public This Week

Seacastle (SC) acquires and leases chassis, containers and containerships, which are essential intermodal equipment used in global containerized cargo trade. The company is a holding of the Fortress Investment Group (FIG). The company is expected to float an IPO this week.

All quotations are from the company's most recent S-1 filings with links provided.

Business Overview (from prospectus)

We are one of the largest operating lessors of intermodal equipment in the world based on total assets. We acquire and lease chassis, containers and containerships, which are essential intermodal equipment used in global containerized cargo trade. This equipment has enabled the growth in global containerized trade because it allows efficient movement of goods via multiple transportation modes, including ships, rail and trucks. We lease our equipment primarily under long-term contracts to the world’s largest shipping lines and several major U.S. rail and trucking companies. As of September 30, 2007, we had total assets of $4.5 billion and we plan to make additional investments in intermodal assets. We intend to pay regular quarterly dividends and expect to grow our dividends.

Offering: 20.0 million shares at $15.00 - $17.00 per share. Net proceeds of approximately $289.9 million will be used to repay debt and for general corporate purposes.

Lead Underwriters: Citi, Bear Stearns, Deutsche Bank

Financial Highlights:

Total revenue was $115.3 million for the combined nine month period ended September 30, 2006 compared to $222.4 million for the nine months ended September 30, 2007, an increase of $107.1 million or 93%... Direct operating expenses were $5.2 million for the combined nine month period ended September 30, 2006 compared to $30.0 million for the nine months ended September 30, 2007, an increase of $24.8 million... Selling, general and administrative expenses were $16.4 million in the combined nine month period ended September 30, 2006 compared to $28.2 million for the nine months ended September 30, 2007, an increase of $11.8 million or 72%.

Competition:

We believe that we are the largest owner and lessor of chassis in North America with one significant leasing competitor. We believe that our share of the marine and North American domestic chassis leasing markets is 53% and 50%, respectively. Our largest competitor is FLEXI-VAN Leasing, Inc. We also compete with other smaller lessors, banks and capital providers on the basis of pricing, product quality and availability, lease flexibility and customer service. We believe that our fleet size and quality as well as our proprietary systems give us a competitive advantage.

Additional Resources:

• Company website
• Online road show
• Tom Taulli: 'Fortress (FIG) tries to build steam in Seacastle IPO'
• AP: 'Seacastle Inc. Sets IPO Terms'