Textainer Extends, Reprices, and Increases Revolving Credit Facility to $1.5 Billion
October 03 2018 - 9:00AM
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 Limited ("TL"), a
wholly-owned subsidiary of the Company, completed an amendment to
expand its revolving credit facility from $700 million to $1.5
billion, lower pricing, and extend the term for five years.
The facility was originally established in September 2012 and as
amended expires in September 2023. Pricing consists of a margin
over the London Interbank Offered Rate (LIBOR). The applicable
margin, which varies based on leverage, was reduced from 2.00% to
1.50%. Borrowings under the facility are used to acquire intermodal
containers and for general corporate purposes.
“We are very pleased with the successful completion of this
amendment, the continued strong support from our current banking
partners and the addition of several new participants. The
attractive pricing secured for the next five years will help reduce
our overall funding costs and improve our ability to more
competitively service our customer requirements,” commented Michael
K. Chan, Textainer Executive Vice President and Chief Financial
Officer.
In connection with the amendment, TL used proceeds from the
facility to pay in full and terminate its separate $190 million
revolver credit facility, which would expire in July 2020, and its
$332 million outstanding term loan, which would mature in April
2019.
“Expanding the facility enabled us to simplify our capital
structure, refinancing under improved terms debt due to mature
within the next two years, while also increasing our borrowing
capacity for additional well-priced container fleet growth and
flexibility,” concluded Mr. Chan.
The group of lenders includes ABN AMRO Capital USA LLC; Bank of
America, N.A.; Branch Banking and Trust Company; BNP Paribas;
Citibank, N.A.; City National Bank; Compass Bank; Credit Industriel
et Commercial; DBS Bank Ltd.; Fifth Third Bank; HSBC Bank USA,
N.A.; ING Bank Belgium NV/SA, N.A.; KeyBank National Association;
MUFG Union Bank, N.A.; PNC Bank, National Association; Royal Bank
of Canada; and Wells Fargo Bank, National Association, which also
serves as Administrative Agent.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world’s
largest lessors of intermodal containers with more than 3 million
TEU in our owned and managed fleet. We lease containers to
approximately 300 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 almost 130,000 containers per year for the
last five years to more than 1,400 customers making us the largest
seller of used containers. Textainer operates via a network of 14
offices and approximately 500 depots worldwide.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181003005272/en/
Textainer Group Holdings LimitedMichael K. Chan, +1
415-658-8261Executive Vice President and Chief Financial
Officerir@textainer.com
Textainer (NYSE:TGH)
Historical Stock Chart
From Aug 2024 to Sep 2024
Textainer (NYSE:TGH)
Historical Stock Chart
From Sep 2023 to Sep 2024