Textainer Completes Public Offering of 6,000,000 Depositary Shares Representing Interests in Series B Preference Shares

Rhea-AI Summary

Textainer Group Holdings Limited (NYSE:TGH) announced the completion of a public offering on August 23, 2021, of 6,000,000 depositary shares representing a 1/1,000th interest in its 6.250% Series B Cumulative Redeemable Perpetual Preference Shares. The offering generated $150,000,000, with net proceeds of approximately $144,875,000 intended for general corporate purposes, including container purchases, share repurchases, and debt repayment. The preference shares will be listed on the NYSE under the ticker symbol 'TGH PRB'.

Positive

• Completed public offering of 6,000,000 depositary shares raising $150,000,000.
• Net proceeds of approximately $144,875,000 to strengthen financial position.
• Intended use of proceeds includes purchasing additional intermodal containers, share repurchase, and debt repayment.

Negative

• Potential dilution of existing shareholders due to the issuance of new shares.

HAMILTON, Bermuda, Aug. 23, 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 the completion of its public offering on August 23, 2021 of 6,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 6.250% Series B Cumulative Redeemable Perpetual Preference Shares, par value $0.01 per share and $25,000 liquidation preference per share (equivalent to $25.00 per depositary share), for an aggregate public offering price of $150,000,000, before underwriting commissions and estimated expenses. The 6.250% dividend rate on the Series B Cumulative Redeemable Perpetual Preference Shares is fixed for life and does not reset. Textainer intends to list the depositary shares on the New York Stock Exchange ("NYSE") under the ticker symbol "TGH PRB".

"We are extremely pleased with the results of this issuance which further strengthens our financial position with attractively priced permanent capital," commented Olivier Ghesquiere, President and CEO of Textainer. "When combined with the existing leverage of our debt facilities, these funds further enhance our ability to finance container investments during this favorable market environment with low-cost financing sources."

Textainer intends to use the net proceeds of approximately $144,875,000 after underwriting commissions and estimated expenses from the offering for general corporate purposes, including the purchase of additional intermodal containers, repurchasing outstanding common shares, payment of dividends and repaying or repurchasing outstanding indebtedness. RBC Capital Markets, LLC, UBS Securities LLC, Keefe, Bruyette & Woods, A Stifel Company and B. Riley Securities, Inc. acted as joint book-running managers for the offering.

About Textainer Group Holdings Limited

Textainer has operated since 1979 and is one of the world's largest lessors of intermodal containers with approximately 4.1 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, and we are one of the largest and most reliable suppliers of new and used containers. Textainer operates via a network of 14 offices and approximately 400 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).

Important Cautionary Information Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. securities laws. Forward-looking statements include statements that are not statements of historical facts and include, without limitation, statements regarding: the expected use of proceeds of the sale of the Series B Preference Shares and depositary shares, and the anticipated listing of the Series B Preference Shares on the NYSE.  Readers are cautioned that these forward-looking statements involve risks and uncertainties, are only predictions and may differ materially from actual future events or results. For a discussion of some of these risks and uncertainties, see Item 3 "Key Information— Risk Factors" in Textainer's Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 18, 2021 and the risks described in the section entitled "Risk Factors" in the prospectus supplement related to the offering of the depositary shares. Textainer's views, estimates, plans and outlook as described within this document may change subsequent to the release of this press release. Textainer is under no obligation to modify or update any or all of the statements it has made herein despite any subsequent changes Textainer may make in its views, estimates, plans or outlook for the future.

Contact Information
Investor Relations
+1 415-658-8333
ir@textainer.com

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SOURCE Textainer Group Holdings Limited

FAQ

What was the purpose of Textainer's public offering on August 23, 2021?

The public offering aimed to raise capital for purchasing intermodal containers, repurchasing common shares, and repaying or repurchasing outstanding indebtedness.

How much capital did Textainer raise in its August 23, 2021 public offering?

Textainer raised a total of $150,000,000 in its public offering.

What is the dividend rate of the Series B Cumulative Redeemable Perpetual Preference Shares?

The dividend rate for the Series B shares is fixed at 6.250% for life.

What is the ticker symbol for Textainer's new depositary shares?

The new depositary shares will be listed under the ticker symbol 'TGH PRB' on the NYSE.

What are the key risks associated with Textainer's public offering?

The risks include potential dilution of existing shareholder value and uncertainties related to the expected use of proceeds from the offering.