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TheStreet Open House

Textainer Completes $600 Million Revolving Credit Facility

Stock quotes in this article: TGH

Textainer Group Holdings Limited (NYSE:TGH) (“Textainer” or the “Company”), the world’s largest lessor of intermodal containers based on fleet size, today announced that Textainer Limited, which is a wholly-owned subsidiary of the Company, entered into a $600 million, five-year revolving credit agreement with a group of financial institutions led by Merrill Lynch Pierce Fenner & Smith Incorporated and Wells Fargo Securities LLC, and including Royal Bank of Canada; Union Bank, N.A.; HSBC Bank; KeyBank National Association; JPMorgan Chase Bank, N.A.; Citibank, N.A.; DBS Bank Ltd.; Sovereign Bank, N.A.; First Hawaiian Bank; Branch Bank and Trust Company; and Umpqua Bank. Bank of America, N.A. will serve as Administrative Agent on the revolving credit facility. The interest rate under the credit agreement is a spread over the London Interbank Offered Rate (“LIBOR”) which varies based on leverage. At the closing, the initial interest rate will be LIBOR plus 150 basis points. The proceeds from borrowings under the credit agreement are expected to be used to purchase containers and for general corporate purposes. The facility also provides for a possible $100 million increase through an accordion feature the Company may elect to utilize.

The new credit agreement represents a renewal and expansion of an existing five-year, $205 million revolving credit facility.

“We continue to see an attractive environment for growth given increased reliance by our shipping line customers on container lessors,” said Philip K. Brewer, Textainer President and Chief Executive Officer. “This new bank facility, with its attractive cost of funds, will provide additional liquidity enabling Textainer to take advantage of these favorable trends to maintain our leadership position in the industry.”

"Year-to-date the Company has completed approximately $2.4 billion of financing in the debt and equity markets, resulting in over $1.3 billion in net incremental funding," commented Hilliard C. Terry, III, Textainer Executive Vice President and Chief Financial Officer. “We appreciate the participation of new and existing banks and believe this is a clear indication of their confidence in our business model, disciplined operating philosophy and growth opportunities.”

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