GATX plans to add $250 mil in debt

GATX Corp., the Chicago-based lessor of railroad tanker cars, plans to sell $250 million of five-year senior notes as soon as today, according to a person familiar with the offering.

The bonds may price to yield about 255 basis points more than similar-maturity Treasuries, said the person, who declined to be identified because terms aren't set. A basis point is 0.01 percentage point.

Proceeds from the sale may be used to repay commercial paper maturing within five days, repay some or all of $230 million of outstanding debt that will mature on April 15, redeem or settle upon the conversion of $42 million outstanding of senior convertible notes or for general corporate purposes, the company said in a filing with the U.S. Securities and Exchange Commission.

GATX last issued debt on Sept. 21, when it sold $300 million of 4.75 percent notes due 2012, according to data compiled by Bloomberg. The fixed-rate debt priced to yield 325 basis points more than similar-maturity Treasuries, the data show. The debt traded on Jan. 25 at 103.663 cents on the dollar to yield 3.306 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.