|Textainer Completes $1.2 Billion Warehouse Financing Facility|
|Thursday, 03 May 2012 05:55|
Textainer Group Holdings Limited (NYSE:TGH) (“Textainer”), the world’s largest lessor of intermodal containers based on fleet size, today announced the closing of a $1.2 billion warehouse securitization facility.
Textainer Marine Containers II Limited (“TMCLII”), a new Textainer asset owning subsidiary entered into the securitization facility and acquired a portion of the intermodal containers owned by Textainer Marine Containers Limited (“TMCL”), another asset owning subsidiary. TMCL used the proceeds it received from TMCLII to terminate TMCL’s $850 million securitization facility.
“The closing of this financing marks another milestone for Textainer,” said Philip K. Brewer, Textainer’s President and Chief Executive Officer. “We are continuing to see strong demand for containers and the additional liquidity from this significantly larger securitization facility further strengthens our capacity to grow organically, support customers and continue as the industry leader.”
The interest rate on the TMCLII securitization facility is 2.625% over LIBOR during an initial two-year revolving period. If the TMCLII securitization facility is not refinanced or renewed following this two-year period, the facility is structured to partially amortize over the next five years and then mature. The syndicate of participating banks include: ABN AMRO; Bank of America, N.A.; Credit Suisse AG, Cayman Islands Branch; Deutsche Bank AG, New York Branch; EverBank Commercial Finance Inc.; ING Bank N.V.; Key Equipment Finance Inc.; Royal Bank of Canada; SunTrust Robinson Humphrey, Inc. and Wells Fargo Bank, N.A. Wells Fargo served as the agent bank.
“This securitization facility enhances our already strong capital structure, and coupled with our recent $400 million asset-backed notes issuance provides ample dry powder for new investments,” added Hilliard C. Terry, III, Textainer’s Executive Vice President and Chief Financial Officer. “We are pleased with the improved pricing and significantly increased size of the new warehouse facility compared to the expiring facility.”