Textainer Announces $550 million Asset-Backed Financing
Textainer Group Holdings Limited (NYSE:TGH) announced the issuance of $550 million in fixed-rate asset-backed notes through its subsidiary, Textainer Marine Containers VII Limited. The offering includes $523.5 million in Class A Notes rated A(sf) and $26.5 million in Class B Notes rated BBB(sf). Funds will primarily be used to reduce bank facility debt, enhancing the company's capacity for organic growth and allowing for additional container investments. The notes feature a weighted average life of approximately five years, secured by TMCL VII's assets.
- Successful issuance of $550 million in asset-backed notes to enhance liquidity.
- Proceeds will reduce bank debt and free up borrowing capacity for future investments.
- Locked in fixed-rate debt at attractive levels, below existing notes.
- None.
HAMILTON, Bermuda, Feb. 10, 2021 /PRNewswire/ -- Textainer Group Holdings Limited (NYSE:TGH; JSE: TXT) ("Textainer", "we", and "our"), one of the world's largest lessors of intermodal containers, today announced that Textainer Marine Containers VII Limited ("TMCL VII"), an indirect, wholly-owned subsidiary of the Company, issued
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 Class A and Class B Notes were rated A(sf) and BBB(sf), respectively, by Standard & Poor's. The Notes have a fixed coupon, a weighted average life of approximately five years and are secured by a pledge of TMCL VII's assets. Proceeds from the issuance were used primarily to pay down debt in our bank facilities.
"We are extremely pleased with the successful issuance of these Notes, which further bolsters our capacity for organic growth. The proceeds will free up borrowing capacity in our bank facilities for incremental container investments. Moreover, we were able to lock in fixed rate debt at very attractive levels below any of our existing fixed rate notes," commented Michael K. Chan, Textainer 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 containers with approximately 3.6 million TEU in our owned and managed fleet. We lease containers to approximately 250 customers, including all of the world's leading international shipping lines, and other lessees. Our fleet consists of standard dry freight, refrigerated intermodal containers, and dry freight specials. We also lease tank containers through our relationship with Trifleet Leasing and are a 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 fleet, we buy older containers from our shipping line customers for trading and resale. We sold an average of approximately 140,000 containers per year for the last five years to more than 1,500 customers making us one of the largest sellers of used containers. Textainer operates via a network of 14 offices and approximately 500 independent depots worldwide. Textainer has a primary listing on the New York Stock Exchange (NYSE: TGH) and a secondary listing on the Johannesburg Stock Exchange (JSE: TXT). Visit www.textainer.com for additional information about Textainer.
Contact Information
Investor Relations
+1 415-658-8333
ir@textainer.com
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SOURCE Textainer Group Holdings Limited
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