Tranz Rail sells new ferry - leases back

["John Regan" <reganjd@clear.net.nz>]

New Zealand. News from The Press - December 22, 1998 

 WELLINGTON -- Tranz Rail has sold its new Cook Strait ferry Aratere to a
United States-based trust from whom it will lease the ferry for 15 years. 

Tranz Rail said the sale and lease-back deal meant it could pay off debt
raised to pay for the building of the ferry. 

"The debt is being retired with the proceeds of a $US55 million ($NZ106m)
sales and lease-back transaction secured over the vessel," Tranz Rail said
yesterday. It did not release further financial details. 

The deal has been arranged by Citibank Group. The sale was to Wilmington
Trust Company, an affiliate of Citicorp USA. 

The transaction was settled on December 18. 

Aratere left Spain last week for a 25-day voyage to Wellington. It has
taken 18 months to build and is due in Wellington on January 11. 

It is to be used as a cargo ship in its first couple of weeks before
replacing the Aratika on Cook Strait crossings from February 1. 

Aratere is the first ship in 15 years to be built specifically for the Cook
Strait service. It is the same size as Tranz Rail's largest ferry, Arahura.
-- NZPA 


http://www.press.co.nz/51/98122263.htm