APL in vessels deal

PUBLISHED : Wednesday, 20 January, 1993, 12:00am
UPDATED : Wednesday, 20 January, 1993, 12:00am

AMERICAN President Companies (APC) has announced that following the purchase of a C9-class vessel in December, the company has acquired the two remaining C9-class vessels formerly leased under long-term charters.

As previously announced, the company paid a total purchase price of about $197 million for the three vessels and funded the purchases with a combination of cash and borrowings.

While the vessels were under charter, dividend payments to the company from American President Lines (APL), a wholly owned subsidiary, were subject to restrictions under the terms of its operating-differential subsidy agreement with the United States Maritime Administration.

The purchase has eliminated these restrictions on the vessels, operated by APL in its transpacific fleet.

APC provides container transportation services in North America, Asia and the Middle East through an inter-modal system combining ocean, rail and truck transportation.