TAL International Container Corp. plans to issue a $241.74 million securitization backed by container lease revenues and residual cash flows.
The TAL portfolio consists of 186,581 containers from 7 different marine cargo container types and all containers are currently out on lease, according to a Standard & Poor’s presale report. The ratings agency assigned the class A notes a preliminary A’ ratings and the class B notes are rated a preliminary BBB’ ratings.
Merrill Lynch, Pierce, Fenner & Smith and RBC Capital Markets are the initial bookrunners on the transaction.
The deal is the third series issued from TAL V master trust. Series 2013-1 consisted of two classes, originally equal to $271.75 million, issued in February 2013. Series 2013-2 also consisted of two classes with an original face value of $268.70 million, issued in November 2013.
S&P said it expected a decline in container lease securitization in 2014 from last year’s $3.2bn due to lower refinancing needs.