Textainer Completes $1.2 Billion Warehouse Financing Facility
HAMILTON, Bermuda--(BUSINESS WIRE)-- Textainer Group Holdings Limited (TGH) (Textainer), the worlds 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 TMCLs $850 million securitization facility.
The closing of this financing marks another milestone for Textainer, said Philip K. Brewer, Textainers 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, Textainers 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.
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, but are not limited to, statements concerning anticipated demand for containers, future growth and available liquidity for future investments. 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. These risks and uncertainties include, without limitation the risks and uncertainties set forth in Textainers filings with the Securities and Exchange Commission. For a discussion of some of these risks and uncertainties, see Item 3D Key InformationRisk Factors in Textainers Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 15, 2012.
The Companys views, estimates, plans and outlook as described within this document may change subsequent to the release of this press release. The Company is under no obligation to modify or update any or all of the statements it has made in this press release despite any subsequent changes that the Company may make in its views, estimates, plans or outlook for the future.
About Textainer Group Holdings Limited
Textainer Group Holdings Limited and its subsidiaries (Textainer) is the world's largest lessor of intermodal containers based on fleet size. The Company began operations in 1979 and as of the most recent quarter end had more than 1.6 million containers, representing more than 2.4 million TEU, in its owned and managed fleet. Textainer leases dry freight, refrigerated, and specialized containers. Each year the Company is one of the largest purchasers of new containers as well as one of the largest sellers of used containers. Textainer leases containers to approximately 400 shipping lines and other lessees and sells containers to more than 1,000 customers worldwide and provides services worldwide via a network of regional and area offices, as well as independent depots.
Textainer Group Holdings Limited
Mr. Tom Gallo, 415-658-8227
Investor Relations Director
Source: Textainer Group Holdings LimitedCopyright Business Wire 2012