CAI International, Inc. Announces an $85 Million Senior Credit Facility for the Acquisition of Rail Cars and Reaching the Milestone of a One Million TEU Container Operating Fleet
SAN FRANCISCO--(BUSINESS WIRE)-- CAI International, Inc. (CAP) (CAI) (NYSE: CAP), one of the worlds leading lessors of intermodal freight containers, today reported that it has entered into an $85 million senior credit facility for the acquisition of rail cars. The senior credit facility is a three-year revolving line of credit with an 80% advance rate on the net book value of eligible rail cars, as defined in the agreement. The facility has a floating rate indexed to Libor plus a margin ranging from 1.50% to 2.25%. The initial margin is set at 2.25%.
Victor Garcia, CEO of CAI, commented, This is our first credit facility for the acquisition of rail cars and we are very pleased with the support we have received from our lenders and the confidence they have shown us by supporting our efforts in growing our rail business. We have been pleased with the opportunities we have considered this year for the acquisition and leasing of rail cars, and this facility will provide CAI with the committed financing to make equipment acquisitions.
He continued, During the process of putting this facility together, we have been able to work with some of our existing lenders as well as new lenders to our company. We thank all those lenders for their support and confidence, in particular Union Bank N.A., the Administrative Agent, Joint Lead Arranger and Sole Bookrunner, and U.S. Bank N.A. the Syndication Agent and Joint Lead Arranger.
He further continued, This week we have also reached the milestone of growing our container fleet to one million TEU. Achieving this size of fleet is a testament to our continued effort to serve our customers growing container needs, and the long-standing relationships that we have maintained since our companys inception 23 years ago. We continue to actively invest in equipment this year in response to ongoing demand from our customers and have seen strong lease out activity for the equipment we purchased earlier in the year. We remain optimistic about the demand and utilization of our equipment for the remainder of this year.
About CAI International, Inc.
CAI is one of the worlds leading managers and lessors of intermodal freight containers. As of June 14, 2012, the company operated a worldwide fleet of approximately 1,000,000 TEUs of containers through 13 offices located in 11 countries including the United States.
This press release contains forward-looking statements regarding future events and the future performance of CAI International, Inc. These statements are forward looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and involve risks and uncertainties that could cause actual results of operations and other performance measures to differ materially from current expectations including, but not limited to, utilization rates, expected economic conditions, availability of credit on commercially favorable terms or at all, customer demand, container investment levels, container prices, lease rates, increased competition, volatility in exchange rates, growth in world trade and world container trade, and others. CAI refers you to the documents that it has filed with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2011 and its interim reports on Form 10-Q and its reports on Form 8-K. These documents contain additional important factors that could cause actual results to differ from current expectations and from forward-looking statements contained in this press release. Furthermore, CAI is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, unless required by law.
CAI International, Inc.
Tim Page, 415-788-0100
Chief Financial Officer
Source: CAI International, Inc.Copyright Business Wire 2012