Textainer Closes $420 Million of Fixed Rate Asset Backed Notes

HAMILTON, Bermuda--()--Textainer Group Holdings Limited (NYSE:TGH) ("Textainer"), 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 $420 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 $350 million in Class A and $70 million in Class B Notes rated A(sf) and BBB(sf), respectively, by Standard & Poor’s. The Notes are scheduled to fully amortize over a weighted average life of 4.65 years.

“This is our first ABS in over two years and follows a significant recent improvement in the container leasing market. We were very pleased with the execution of our Notes issuance, which is indicative of the position of Textainer as one of the industry’s leading intermodal container lessors”

The proceeds from the issuance of the Notes were used to pay down certain short-term debt. The Notes are secured by a pledge of TMCL V's intermodal shipping container assets.

The Notes were well received by investors, as the offering was significantly over-subscribed. RBC Capital Markets, BofA Merrill Lynch and PNC Capital Markets LLC served as the lead bookrunners for the transaction.

“This is our first ABS in over two years and follows a significant recent improvement in the container leasing market. We were very pleased with the execution of our Notes issuance, which is indicative of the position of Textainer as one of the industry’s leading intermodal container lessors,” 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 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.

Contacts

Textainer Group Holdings Limited
Hilliard C. Terry, III, +1 415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com

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