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CAI International, Inc. (CAI) (NYSE: CAP), one of the world’s 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 company’s 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.”