Textainer Closes $500 Million of Fixed Rate Asset Backed Notes
June 28 2017 - 4:05PM
Business Wire
Textainer Group Holdings Limited (NYSE:TGH) ("Textainer" or
the “Company”), one of the world's largest lessors of intermodal
containers, today announced that Textainer Marine Containers V
Limited ("TMCL V"), one of the company's subsidiaries, issued
$500 million of Fixed Rate Asset Backed Notes (the "Notes").
The Notes were issued to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933 (the "Act") and to
non-U.S. persons in accordance with Regulation S promulgated
under the Act. The Notes comprise of $416 million in Class A and
$84 million in Class B Notes rated A(sf) and BBB(sf), respectively,
by Standard & Poor’s. The Notes are scheduled to fully amortize
and have a weighted average life of approximately 4.9 years.
The proceeds from the issuance of the Notes were primarily used
to pay down existing bank facilities, enabling the Company to
acquire new intermodal shipping containers and related assets. The
Notes are secured by a pledge of TMCL V's assets.
The Notes were purchased by both new and repeat investors that
participated in our recent offering in May. RBC Capital Markets,
BofA Merrill Lynch, Credit Suisse and Wells Fargo Securities served
as the lead bookrunners for the transaction.
“This is our second ABS offering in just two months and follows
a significant recent improvement in the container leasing market,
coupled with strong capital markets conditions. We were pleased to
complete this Notes issuance, which represented one of the largest
ABS transactions in the history of our industry. This further
validates our position as one of the industry’s leading intermodal
container lessors and positions us to take advantage of the strong
lease-out market,” commented Hilliard C. Terry, III, Textainer’s
Executive Vice President and Chief Financial Officer.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world’s
largest lessors of intermodal shipping containers with a total of
2.0 million containers representing 3.1 million TEU in
our owned and managed fleet. We lease containers to approximately
320 customers, including all of the world’s leading international
shipping lines, and other lessees. Our fleet consists of standard
dry freight, dry freight specials, and refrigerated intermodal
containers. We also lease tank containers through our relationship
with Trifleet Leasing and are the primary supplier of containers to
the U.S. Military. Textainer is one of the largest and most
reliable suppliers of new and used containers. In addition to
selling older containers from our lease fleet, we buy older
containers from our shipping line customers for trading and resale.
We sold an average of more than 120,000 containers per year for the
last five years to more than 1,400 customers making us one of the
largest sellers of used containers. Textainer operates via a
network of 14 offices and approximately 500 depots worldwide.
This press release shall not constitute an offer to sell or a
solicitation of an offer to purchase any of the Notes, and shall
not constitute an offer, solicitation or sale of the Notes in any
state or jurisdiction in which such an offer, solicitation or sale
would be unlawful.
The Notes will not be registered under the Securities Act or any
state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption
from registration requirements of the Securities Act and applicable
state laws.
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version on businesswire.com: http://www.businesswire.com/news/home/20170628006029/en/
Textainer Group Holdings LimitedHilliard C. Terry, III, +1
415-658-8214Executive Vice President and Chief Financial
Officerir@textainer.com
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